Further Investment in China
Cookson Group PLC
31 May 2006
31 May 2006
COOKSON GROUP PLC CONTINUES ITS EXPANSION IN CHINA WITH £10 MILLION INVESTMENT
Cookson Group plc, a leading materials science company, today announces three
new projects - totaling £10 million of investment - which will further expand
the Chinese activities of Vesuvius, Cookson's Ceramics division.
Commenting on the new investments, Francois Wanecq, Chief Executive of Vesuvius
said:
'We have successfully grown Vesuvius' local presence in China over the last ten
years. These new projects - totaling £10 million of investment - will provide
further profitable growth by exploiting our leading technologies in new, highly
efficient facilities supplying growing markets in the foundry, glass and solar
cell markets.'
Construction of £5 million Foundry Crucibles facility in Suzhou (Jiangsu
Province)
This £5 million facility will be constructed in Suzhou close to Vesuvius' two
existing manufacturing sites which make, respectively, flow control products for
the continuous casting of steel and fused silica ceramics used in the glass
industry.
The new facility, which will be operational by mid-2007, will produce long life,
high performance alumina graphite crucibles for the fast growing non-ferrous
foundry market. The Chinese foundry industry is the largest in the world and
has experienced growth of around 10% over the last few years. Future growth is
expected to be driven by the expansion of China's automotive and aerospace
industries.
This new investment, along with our existing crucible plants in Europe, India
and NAFTA, will further enhance Vesuvius' position as one of the leading
suppliers of crucibles for the foundry market in the world.
£2 million expansion of our Glass Roller facility in Kua Tang (Jiangsu Province)
Our existing facility, which manufactures fused silica rollers used in the glass
tempering industry under the Zyarock(R) brand, is to undergo a major, £2
million, expansion to become Vesuvius' worldwide lead centre for glass roller
production. As well as producing finished products for the Asian markets, the
expansion will allow this facility to supply 'blank' rollers to other Vesuvius
facilities in Europe and NAFTA for final finishing before distribution to end
customers. The market for glass rollers has seen good growth in recent years
driven by the buoyant construction sector in China combined with the very strong
demand for flat screen televisions. The expansion of the facility is expected
to be completed by the end of 2006.
Construction of new £3 million Solar Crucible facility in Kua Tang (Jiangsu
Province)
A new, £3 million, facility will be constructed alongside the existing glass
roller facility at Kua Tang to manufacture solar crucibles used to contain
silicon at very high temperatures in the manufacture of photovoltaic ('solar')
cells. This industry is currently experiencing double-digit growth and is
forecast to accelerate as the market for renewable sources of energy develops.
The facility is expected to be operational by the end of 2006.
About Cookson Group plc
Cookson Group plc is a leading materials science company operating on a
worldwide basis in Ceramics, Electronics and Precious Metals markets.
The Ceramics division is the world leader in the supply of advanced flow control
refractory products and systems to the global steel industry and a leading
supplier of specialist ceramic products to the glass and foundry industries. It
is also the regional leader in the US, UK and Australia in the supply and
installation of monolithic refractory linings.
The Electronics division is a leading supplier of advanced surface treatment and
plating chemicals and assembly materials to the automotive, construction and
electronics markets.
The Precious Metals division is the leading supplier of fabricated precious
metals (gold, silver, platinum, etc.) to the jewellery industry in the US, the
UK, France and Spain. Products include alloy materials, semi-finished jewellery
components and finished jewellery.
Note to editors:
For 2005, 20% of Cookson Group's revenue and 43% of its trading profit came from
its operations in Asia-Pacific, of which China is the largest single country.
For further information please contact:
Shareholder/analyst enquiries:
Nick Salmon, Chief Executive Cookson Group plc
Mike Butterworth, Group Finance Director Tel: + 44 (0)20 7822 0000
Isabel Vilela, Investor Relations Manager
Media enquiries:
John Olsen Hogarth Partnership
Tel: +44 (0)20 7357 9477
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