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.
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