Umeco in JV to set up vacuum bagging films production to cater to Chinese wind energy market

23-Sep-10

Umeco plc, an international provider of supply chain services and advanced composite materials primarily to the aerospace & defence industries, announced that its Process Materials business has entered into a joint venture with its Chinese distributor Shanghai Leadgo Technology Co., Ltd.. The joint venture agreement is subject to approval from Chinese authorities, and is expected to be granted within the next two months. Umeco will have a 51% stake in the joint venture company - Shanghai Umeco Composites Co. Ltd., while Leadgo will have a 49% stake. The JV will establish a facility in Shanghai to manufacture vacuum bagging films for the rapidly growing Chinese wind energy market. The new facility should be fully operational by the end of 2011. Umeco estimates its total investment in the JV will be RMB28 mln (US$4.1 mln) comprising a cash investment of US$2.4 mln for its equity stake in the company and a US$1.7 mln shareholder loan facility. Leadgo will also make a similar investment and provide a similar loan.