25th Apr 2014 08:09
LONDON (Alliance News) - Low & Bonar PLC Friday said it plans to spend around GBP26 million on building a new manufacturing facility in China, to support expansion in Asia.
The performance materials group said the new factory, which will be build on an industrial park in Changzhou near Shanghai, will use its Colback technology to supply the fast growing and important carpet tile backing and automotive markets in Asia. Colback is widely used as a primary backing in carpet tiles, high-grade patterned wall to wall carpeting, and walk-off mats.
It said it expects production to commence in 2016.
Low & Bonar said the GBP26 million will be spread over two years, starting towards the end of this year, and will be funded from its own resources.
"The investment is an exciting opportunity to capitalise on our unique technology throughout Asia and to follow, and support, our strategic US customers moving into the region. The new factory will provide a strong platform for further growth," said Chief Executive Officer Steve Good in a statement.
Low & Bonar shares were down 0.4% at 82.94 pence per share Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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