15th Feb 2005 07:00
Morgan Crucible Co PLC15 February 2005 15 February 2005 The Morgan Crucible Company plc ("Morgan") enters into new Joint Venture agreement in China Morgan's Thermal Ceramics division ("Thermal") has reached an agreement to enterinto a Joint Venture in China with Hubei Kailong Chemical Group Co. Ltd byacquiring a 70% stake in Hubei Kailong's ceramic fibre business. Theconsideration is a total of RMB 30.4 million (US$3.7m), to be satisfied by RMB25.4m (US$3.1m) of cash and the remainder being the licensing of know-how andtechnology. The Joint Venture will trade under the name Morgan Kailong (Jingmen)Thermal Ceramics Co. Ltd. ("Kailong"). The transaction remains subject to thecompletion of local approvals. Kailong produces high temperature insulation fibres and ancillary products, andis based in Jingmen City, Hubei province, close to the 3 Gorges Dam. Thermal will be adding their world-class technology and know-how to the existingHubei Kailong Ceramic Fibre business. The Joint Venture will enable Thermal toincrease its presence in China and substantially increase its production inlow-cost areas. This is the second Chinese Joint Venture that Morgan has announced in the lasttwelve months. Morgan's Magnetics division reached an agreement in August 2004to establish a Chinese Joint Venture that will trade under the name SANVAC.SANVAC will produce sintered Rare Earth permanent magnets, which are used inapplications in electric motors, generators and consumer products. Warren Knowlton, Chief Executive Officer, commented, "These two Joint Venturesstrongly support our target of increasing our presence in China. The strategicalliances with well-respected Chinese partners mean that we are well placed toalign our superior technology with their knowledge of local production" For further information please contact: The Morgan Crucible Company plcVictoria Gould, Director of Group Communications 01753 837 000 Finsbury GroupCharlotte Hepburne-Scott / Robin Walker 020 7251 3801 Notes to editors: The Morgan Crucible Company plc Morgan is a listed company on the London Stock Exchange and is part of theFTSE250 index. It is one of the world's leading specialist materials engineering companies,producing solutions in carbon, ceramic and magnetic materials. For moreinformation, visit www.morgancrucible.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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