03 April 2009
03 April 2009
AGY will acquire a 70% controlling interest in Shanghai Grace Technology Company Limited, a producer of E-glass yarns for the electronics industry, with the option and intent to purchase the remaining outstanding shares in the near future.
The acquisition, which is expected to be finalized in second quarter of 2009, will expand AGY’s geographic yarn manufacturing footprint and enable it to service its growing Asia-Pacific customer base. The Asia-Pacific region represents a large market for AGY products and technology due to its diverse and widespread territory, as well as continuing economic growth. “We see significant opportunities in the Asia-Pacific region for expanding our revenues and earnings over the long-term as a number of markets we serve, such as electronics and thermoplastics, are expected to grow,” said Doug Mattscheck, AGY President and Chief Executive Officer. “We are taking advantage of these growth areas through the purchase of Shanghai Grace Technology.”
The AGY-managed facility is a world-glass, state-of-the art operation with capacity to produce in excess of 18,000 MT. ""Our goal is to become the preeminent independent yarn manufacturer in Asia by offering E-glass products with a strong base of local support and manufacturing,” said Mattscheck. “We are currently building our sales, marketing and customer services teams to capitalize on the region’s significant growth opportunities.”
Shanghai Grace Technology is a separately incorporated, independent entity from Shanghai Grace Fabric Company Limited, another company owned by Grace THW Holding Limited. AGY acquired no weaving operations in the transaction.