31st May 2006 07:01
Cookson Group PLC31 May 2006 31 May 2006 COOKSON GROUP PLC CONTINUES ITS EXPANSION IN CHINA WITH £10 MILLION INVESTMENT Cookson Group plc, a leading materials science company, today announces threenew projects - totaling £10 million of investment - which will further expandthe Chinese activities of Vesuvius, Cookson's Ceramics division. Commenting on the new investments, Francois Wanecq, Chief Executive of Vesuviussaid: "We have successfully grown Vesuvius' local presence in China over the last tenyears. These new projects - totaling £10 million of investment - will providefurther profitable growth by exploiting our leading technologies in new, highlyefficient facilities supplying growing markets in the foundry, glass and solarcell markets." Construction of £5 million Foundry Crucibles facility in Suzhou (JiangsuProvince) This £5 million facility will be constructed in Suzhou close to Vesuvius' twoexisting manufacturing sites which make, respectively, flow control products forthe continuous casting of steel and fused silica ceramics used in the glassindustry. The new facility, which will be operational by mid-2007, will produce long life,high performance alumina graphite crucibles for the fast growing non-ferrousfoundry market. The Chinese foundry industry is the largest in the world andhas experienced growth of around 10% over the last few years. Future growth isexpected to be driven by the expansion of China's automotive and aerospaceindustries. This new investment, along with our existing crucible plants in Europe, Indiaand NAFTA, will further enhance Vesuvius' position as one of the leadingsuppliers of crucibles for the foundry market in the world. £2 million expansion of our Glass Roller facility in Kua Tang (Jiangsu Province) Our existing facility, which manufactures fused silica rollers used in the glasstempering industry under the Zyarock(R) brand, is to undergo a major, £2million, expansion to become Vesuvius' worldwide lead centre for glass rollerproduction. As well as producing finished products for the Asian markets, theexpansion will allow this facility to supply 'blank' rollers to other Vesuviusfacilities in Europe and NAFTA for final finishing before distribution to endcustomers. The market for glass rollers has seen good growth in recent yearsdriven by the buoyant construction sector in China combined with the very strongdemand for flat screen televisions. The expansion of the facility is expectedto be completed by the end of 2006. Construction of new £3 million Solar Crucible facility in Kua Tang (JiangsuProvince) A new, £3 million, facility will be constructed alongside the existing glassroller facility at Kua Tang to manufacture solar crucibles used to containsilicon at very high temperatures in the manufacture of photovoltaic ("solar")cells. This industry is currently experiencing double-digit growth and isforecast to accelerate as the market for renewable sources of energy develops.The facility is expected to be operational by the end of 2006. About Cookson Group plc Cookson Group plc is a leading materials science company operating on aworldwide basis in Ceramics, Electronics and Precious Metals markets. The Ceramics division is the world leader in the supply of advanced flow controlrefractory products and systems to the global steel industry and a leadingsupplier of specialist ceramic products to the glass and foundry industries. Itis also the regional leader in the US, UK and Australia in the supply andinstallation of monolithic refractory linings. The Electronics division is a leading supplier of advanced surface treatment andplating chemicals and assembly materials to the automotive, construction andelectronics markets. The Precious Metals division is the leading supplier of fabricated preciousmetals (gold, silver, platinum, etc.) to the jewellery industry in the US, theUK, France and Spain. Products include alloy materials, semi-finished jewellerycomponents and finished jewellery. Note to editors: For 2005, 20% of Cookson Group's revenue and 43% of its trading profit came fromits operations in Asia-Pacific, of which China is the largest single country. For further information please contact: Shareholder/analyst enquiries:Nick Salmon, Chief Executive Cookson Group plcMike Butterworth, Group Finance Director Tel: + 44 (0)20 7822 0000Isabel Vilela, Investor Relations Manager Media enquiries:John Olsen Hogarth Partnership Tel: +44 (0)20 7357 9477 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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