LATI industria termoplastici
S.p.A. and RadiciGroup Plastics join forces to
develop the chinese market
The two companies sign a letter of intent
to set up a fifty-fifty joint venture in China
RadiciGroup Plastics and Lati Industria
Termoplastici S.p.A. have signed a letter
of intent to form a fifty-fifty joint venture
to develop the Chinese engineering plastics
market.
The constant growth of this Asian market offers
attractive opportunities for businesses with
a strong international presence and a wide range
of products.
The surging Chinese auto industry, the huge
potential arising from the modernization of
the electric power grid and electrical equipment,
the growing pool of domestic appliance buyers,
the large investments in infrastructure, the
increasing hunger for high quality goods: these
are the factors that will have an increasing
influence on Chinese growth, which up to now
has been tied to the competitive advantage of
low-cost labour. For these reasons, the two
Italian companies have decided to take the plunge
and join forces in China. Lati S.p.A.
is among the world leaders in self-extinguishing
compounds for the electrical and household appliance
sectors. In the plastics sector, RadiciGroup
is a leader in engineering plastics for automotive
applications.
RadiciGroup Plastics has two strengths
that ensure high product and service quality
standards: the vertical integration of its polyamide
(nylon) chain and its strong international presence.
Lati S.p.A. is a highly specialized company
with a wide range of products that can meet
a multitude of requirements, including those
of high technology sectors.
These strong points will enable the companies
to meet the needs of the most demanding customers.
 The
joint venture's headquarters and production
base will be in Suzhou, 80 km from Shanghai,
at the RadiciPlastics Suzhou Co., Ltd. compounding
plant, started up by RadiciGroup in April of
this year.
The joint venture will manufacture and sell
a broad range of engineering plastics under
their corresponding brand names in the Southeast
Asian market - China, Hong Kong, Taiwan and
Singapore, in particular.
Furthermore, the joint venture will market
all the compounds produced by both parent companies
that, for the time being, will not be manufactured
at the Chinese site, as the production lines
are not yet installed.
 Francesco
Michele Conterno, chairman and managing
director of Lati S.p.A., pointed out
the bright prospects that will arise from setting
up the joint venture: "This agreement with
RadiciGroup will allow both companies to provide
more and better services to customers in the
Chinese market.
It will be an excellent opportunity to strengthen
our presence in a very promising market."
 Angelo
Radici, chairman and CEO of RadiciGroup,
and Maurizio Radici, vice-chairman of
RadiciGroup, stated: "Thanks to our collaboration
with Lati S.p.A. in the Chinese market, we will
enhance our presence and experience in this
Asian country with the specialized know-how
and reliability of our partner, which has already
carved out a leadership position in the electrical/electronics
sector of the plastics industry.
Although they will join forces in China to
take advantage of their potential synergies,
RadiciGroup Plastics and Lati S.p.A.
will be free to pursue their respective strategies
elsewhere in the world.
By forming this joint venture in the Far East,
Lati S.p.A. and RadiciGroup Plastics
are taking a unique and competitive approach
to confronting the challenges of this gigantic
Asian market.
| Contact: |
email:
marketing@it.lati.com
LATI Industria Termoplastici S.p.A.
Via F. Baracca, 7 21040
Vedano Olona (VA) - Italia
Tel. : +390332409111 - Fax: +390332409307
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