K-Tron: Purchase of assets of leading Chinese manufacturer

New Jersey-based K-Tron, the conveyor and feeder specialist, has purchased some of the assets of Wuxi Chenghao Machinery, a privately held company and leading manufacturer of feeder and ancillary equipment for the plastics industries in China.
The sums of money involved are slightly unclear. In a statement, K-Tron said: “The total cost of the transaction over a five-year period, including the purchase price and payments under related employment and other arrangements with Wuxi Chenghao’s current owner, could be as much as approximately $3.5m.”
Located some 60 miles west of Shanghai and with approximately 60 employees, Wuxi Chenghao manufacturers a range of equipment including volumetric and gravimetric feeders, vibratory trays, pelletisers and pneumatic screen changers.
Edward B. Cloues II, K-Tron’s chairman and ceo, said: “The domestic PRC [People’s Republic of China] market for plastics processing is growing at double digit rates, and this acquisition will enable us to address the domestic customer base with products designed and manufactured in PRC and sold in local currency.”
The purchase is set for completion in early 2007, and is subject to closing conditions and government approvals from the Chinese government.

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