Re Joint Venture
January 09 2004 - 5:20AM
UK Regulatory
RNS Number:0451U
API Group PLC
09 January 2004
9 January 2004
API GROUP PLC
Joint Venture with Swanson Plastics Corporation Strengthens Asian Presence
API Group plc announced today that its subsidiary, API Coated Products Limited
has formed a new joint venture company in China with Swanson Plastics
Corporation ("SPC"), a privately owned company headquartered in Taiwan. The new
joint venture company, ASK (API Swanson Kunshan Limited), will manufacture and
supply siliconised film to manufacturers of hygiene products in South East Asia.
Under the terms of the joint venture agreement, API and SPC will each hold 50%
of the new company.
ASK brings together two businesses with complementary strengths, skills and
expertise, both of which have strong market positions. API Coated Products
Limited is a leading manufacturer and supplier of siliconised release products
in Europe and the Far East which when combined with SPC, the largest
manufacturer of polyethylene film in Asia, will provide an enlarged platform to
exploit the growing demand for these products in this region. In the last year,
SPC's sales have grown by 35%.
The market for high quality hygiene products continues to grow rapidly. The
establishment of the joint venture is consistent with API's strategy of
refocusing its business, improving operating efficiencies, and capitalising on
the many opportunities for the development of new products.
Derek Ashley, Chief Executive of API Group plc said:
"The establishment of ASK represents an excellent opportunity to gain business
in the expanding Asian market. API is confident that its investment in the joint
venture is in the Group's long term interest, giving it access to a market that
continues to grow."
ENDS
Enquiries
Derek Ashley, Group Chief Executive
David Walton, Group Finance Director
API Group plc Tel: 01625 650 334
Tim Spratt/Michelle Morton
Financial Dynamics Tel: 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
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