UK: Low & Bonar Plc joint venture with Abu Dhabi Basic Industries
Low & Bonar Plc., the technical textile and contract flooring manufacturer, said it has formed a joint venture with Abu Dhabi Basic Industries Corporation to produce artificial grass yarns.The joint venture will build a manufacturing plant in the Abu Dhabi Polymers Park, with production expected to start in 2009, the company said.
Low & Bonar said the facility will complement its plants in Scotland, Belgium and China, and will provide further capacity to support growth in artificial grass yarns -- a segment which is growing at more than 15 percent a year as demand for artificial sports pitches and artificial landscaping increases.
Group chief executive Paul Forman said: 'This new venture will give us a strong position in one of the largest potential markets for artificial grass and allow us to satisfy the significant growth in global demand.'
The new plant is also located close to sources of principal raw materials and will give ready access to new markets in the Gulf and Middle East, it said. Low & Bonar will have a 75 percent share and operational control of the joint venture, which it is establishing through a subsidiary.
The total initial investment in the joint venture is estimated at $25 million, with Low & Bonar committing $6 million in 2008.
The joint venture will manufacture products which are already part of Low & Bonarís portfolio and will distribute these products exclusively through the Groupís existing sales and distribution infrastructure.
Added: April 16, 2008 Source: Agencies
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