RENOLIT AG: Purchase contract for company in Guangzhou

RENOLIT AG, Worms, Germany, is active in the Asian market and on 31st of May 2006 signed a contract with the current shareholder, TinsChemical Corporation Ltd., Hong Kong, to purchase 100 per cent of the business shares in Guangzhou TinsPlastics Co., Ltd. in Guangzhou/China. Guangzhou TinsPlastics employs 164 people and in the 2005 business year generated sales of more than €25 million. At present, the company manufactures flexible technical films and specialties which are processed further to create products for office organisation and for niche applications and to create self-adhesive articles. The current production capacity amounts to 28,000 tons of film a year, most of which ends up in regional Chinese markets.
Gateway to South-East Asia
‘With this strategic step we want to prepare ourselves for the competition in the growth regions of Asia and the Pacific. We are beginning this process by establishing our own production facility and sales organisation to ensure that we are able to deliver directly to the strategically important customers in this region,’ says Michael Kundel, the board mem- ber at RENOLIT AG with responsibility for sales and marketing, in ex- plaining the new acquisition.
RENOLIT wants to expand its product range to include decorative surface films for the furniture and construction industry as well as the exist- ing range of flexible technical films. To assist this, the intention is to start further training measures and to adapt the production facilities in the short term to bring them up to the necessary technical standards. In the long term, further investments are planned. A decision on these investments will be taken on the basis of market trends.

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