Industry News

Scapa Group Buys Out Chinese Joint Venture Partner

Published on 2005-03-15. Author : SpecialChem

Scapa Group plc ("Scapa") has completed the buy out of its Chinese joint venture partner Mei Wei Holdings Ltd. (Mei Wei) for £345,000 (5 million Hong Kong Dollars). The joint venture, Scapa (Hong Kong) Ltd was established in February 2000 with Scapa having a 75% shareholding and Mei Wei 25%. The buy out will enable Scapa to accelerate plans for increased manufacturing capabilities within China to meet the requirements of an increasing broad range of speciality tape end markets in the region.

The consideration was payable in cash in Hong Kong dollars with 20% of the consideration deferred until 30th April 2005 subject to the performance of certain warranties by the vendor.

Commenting on the buy out Tony Watson Chief Executive of Scapa said: "This is a further important step in expanding Scapa's presence in China. Over the past 5 years we have created a firm foundation for profitable growth in Asia and have a strong core of customers. This buy out will enable Scapa to establish additional manufacturing capabilities within China to meet the demands of this rapidly growing market for specialist technical tapes and cable compounds."

Source: Scapa Group plc

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