Sapa forms Joint Venture in South-East Asia
Sapa acquires 65% of the shares of the aluminium extrusion company Vijalco and
forms a joint venture with the Vietnamese Ben Thanh Group. The new company will
be called Sapa BTG.
The Vietnam Japan Aluminium Co, (Vijalco) established in 1996, has been a joint
venture between the Japanese companies Tachibana and Sojitz Corporation and the
Vietnamese Ben Thanh Group. The company is located in Ho Chi Min City and has
established a strong position in selected segments of the Vietnamese market. The
production covers both standard profiles to the building and construction
segment and more specialized solutions for the furniture and automotive
industries. The company has 150 employees.
Sapa will, together with its local partner the Ben Thanh Group, form Sapa BTG.
The ambition is to develop the company to become a main player in the Vietnamese
market and support Sapa in its overall strategy of establishing a broader
footprint in Asia.
"It is Sapa's clear ambition to grow in Asia, and this is an opportunity to join
forces with a strong local partner and access a rapidly growing economy", says
Tim Stubbs, President and CEO of Sapa. "The acquisition of Vijalco marks a first
step for further growth in the region".
"Vijalco is one of the top performers in the Vietnamese market today, in terms
of quality, enabling them to serve challenging customers", says Svein Tore
Holsether, Business Area President Sapa Asia & Middle East. "In Sapa BTG we wish
to use our expertise and capabilities to develop this position and utilize the
Sapa sales network to grow the business".
"The Ben Thanh Group is very pleased to have the worlds' leading aluminium
extrusion company as partner in this joint venture, and we see great
opportunities to develop Sapa BTG further both in productivity and quality",
says Mr. Nguyen Quang Tien General Director of the Ben Thanh Group.
The deal that was closed today will be effective from 1 December 2010. It means
that Sapa acquires 65% of the shares in Vijalco by purchasing the Japanese
parties' shares, and by a capital increase. Jarle Dragvik has been appointed
General Director of Sapa BTG.
For more information please contact:
Svein Tore Holsether, Business Area President Asia & Middle East,
+47Â 95Â 15 52 22 or
Jarle Dragvik, General Director Sapa BTG, +47 911 727 34.
Sapa is the largest aluminium profiles producer in the world. The Sapa Group
develops, manufactures and markets value-added profiles, profile-based building
systems and heat exchanger solutions in the light-weight material aluminium.
Sapa is divided in the business areas Sapa Profiles, Sapa Building System and
Sapa Heat Transfer and is represented in Europe, North America and Asia. The
business concept is built on close cooperation with customers. Sapa is the
leading company in its field of operation and have customers in the building,
transport, engineering, telecom and home and office industry. The Sapa Group has
combined net sales of 25,100 MSEK and 13,100 employees. Sapa is part of
Norwegian Orkla ASA. Further information can be found on the web site:
www.sapagroup.com
[HUG#1464868]
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Source: Orkla ASA via Thomson Reuters ONE
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