1 Jul 2013 07:30
1 July 2013
Tricorn Group Plc
("Tricorn" or the "Group")
Tricorn Joint Venture in China
Tricorn Group plc (AIM: TCN.L), the AIM quoted tube manipulation specialist, is pleased to announce that it has agreed terms for the formation of a joint venture in China which will manufacture larger diameter tubular assemblies. The new company called Minguang-Tricorn Tubular Products Nanjing Ltd will be fully operational following the approval of its business licence which is expected around the middle of this month.
The joint venture formed between Tricorn's wholly owned subsidiary in China, Maxpower Automotive Components Manufacturing (Wuxi) Ltd ("Maxpower Wuxi"), and Nanjing Minguang Oil Pipe Company Ltd ("Minguang") will be based in Nanjing. The facility there offers significant scope for expansion and will initially have around 40 employees.
Under the terms of the agreement, Tricorn will own 51% of the joint venture. Maxpower Wuxi will pay consideration of RMB 3,920,700 (£0.39m) into the joint venture, funded from short term borrowings, whilst Minguang's consideration will be satisfied through the provision of plant and equipment and operational capability. The joint venture will supply exclusively through Tricorn's businesses in China and overseas.
Mike Welburn, Chief Executive commented:
"I am delighted to be announcing the formation of this joint venture with Minguang with whom we have built a strong trading relationship over many years.
"It represents a further significant step in us establishing a growing presence in a key world market.
The production capabilities of the joint venture are entirely complementary with those within our Maxpower Wuxi facility and our recent investment in a semi automated painting facility at Wuxi has been specifically designed to accommodate these larger tube assemblies.
"We are already in advanced discussions with our customers in China who have expressed a strong interest in us developing these wider capabilities and we remain very positive about our prospects in the region."
Enquires:
Tricorn Group plc | Tel +44 (0)1684 569956 |
Mike Welburn, Chief Executive | www.tricorn.uk.com |
Phil Lee, Group Finance Director | |
Westhouse Securities Limited | Tel + 44 (0)20 7601 6100 |
Tom Griffiths - Corporate Finance Henry Willcocks - Corporate Broking | |
Winningtons Tom Cooper/Paul Vann | Tel +44 (0)20 3176 4722 Mob + 44 (0)797 122 1972 Email - tom.cooper@winningtons.co.uk |
Notes to Editors:
Tricorn is a value added manufacturer and specialist manipulator of pipe and tubing assemblies to niche markets worldwide in the Energy & Utilities, Transportation and Aerospace sectors.
Headquartered in Malvern, UK, Tricorn employs around 400 employees, has 5 manufacturing facilities in China, USA and UK. It operates through five brands: MTC; Redman Fittings; Maxpower, RMDG Aerospace and Franklin Tubular Products.