Specialist polymer foam producer Zotefoams has acquired full ownership of its Chinese joint venture, Kunshan Zotek King Lai (KZKL), from King Lai Group. No financial terms have been announced.
UK-based Zotefoams started the joint venture with China-based King Lai in March 2015 with Zotefoams owning a 51% share, and King Lai 49%. KZKL manufactures and sells Zotefoams’ T-Fit insulation products. The products were originally made in King Lai’s factory in Kunshan, China.
Zotefoams said manufacturing has now moved to “a separate, purpose designed state-of-the-art plant” in Kunshan, Jiangsu Province. Following the grant of a business licence to KZKL in December, Zotefoams acquired full control of the business.
The company said: “KZKL will supply Zotefoams’ T-Fit insulation products to service the exacting demands of the biotechnology, pharmaceutical and semiconductor industries globally, other than in North America where our long-established relationship with a local partner remains in place.”
David Stirling, group CEO of Zotefoams, said: “With Kunshan Zotek King Lai now a wholly owned subsidiary, Zotefoams is well placed to fully capitalise on the potential of T-Fit clean-room products, while also giving us a platform to extend the range of products under the T-Fit brand during 2017.”
In a trading update issued on 9 January, Zotefoams said it experienced a particularly strong end to the 2016 financial year with sales growth of approximately 13% in the second half, benefitting from sales growth in its HPP business and favourable foreign exchange rates.
The company’s investment in global capacity in Walton, Kentucky, USA remains on target to be operational in the first half of 2017.
It plans to announce preliminary results for the year ended 31 December 2016 on 14 March.