25/2018 – Letter of intent to form joint venture in China
The Management Board of Rawlplug S.A. announces that today, 5 November 2018, a letter of intent was signed with business partner Shanghai Yafo Capital Asset Management Co. Ltd, based in Shanghai (China), regarding the formation of a production and sales joint venture company. The company’s business activities will include the production of RAWLPLUG-branded specialised fixings and their distribution in China. According to the letter of intent, Rawlplug S.A. will have a 40% stake in the newly-formed company. Rawlplug S.A. will contribute production machines and know-how, while the business partner will pay for its stake with a cash contribution. The signing of a joint-venture agreement and company registration are expected to take place in the first quarter of 2019.
The formation of a new company is in line with RAWLPLUG Group’s key strategic objectives concerning foreign expansion, with particular emphasis on Asian markets, where the Chinese market plays a leading role. This will be the second entity operating in this market after Rawlplug Shanghai Trading Co. Ltd., which focuses on the centralisation of RAWLPLUG Group’s import purchases in China and the distribution of commercial goods in Asia. RAWLPLUG Group is currently also expanding its activities in Europe, Asia, the Middle East, Australia and Africa.