11th Mar 2015 16:10
LONDON (Alliance News) - Zotefoams PLC Wednesday said it has created a new China-based joint venture company with King Lai Group to manufacture and sell insulation products.
The two companies have previously worked together in China to sell T-Tubes, which are an insulation system specifically developed for use in clean environments, and will now work together under a new venture company, ZOTEK King Lai, to manufacture and sell insulation products in China and elsewhere.
Zotefoams will hold a 51% share of the new company, with King Lai holding the balance. ZOTEK King Lai will offer local supply into the market in China and a more rapid response to other markets including Asia, India and the Middle East, said the company.
Under the venture, Zotefoams said the manufacturing of products using the company's ZOTEK foam materials will begin in the second half of 2015, whilst King Lai will be the exclusive distributor of the products in China. Zotefoams subsidiary Zotefoams Operations Ltd will be responsible for all sales outside of China.
"I am delighted to extend our relationship with King Lai. Their commitment to operational excellence and strong position in products for clean-room markets make King Lai an ideal partner to accelerate the development of our unique materials," said Managing Director David Stirling.
Zotefoams shares were up 2.9% to 232.00 pence per share late Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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