- 14 February 2007 -
K-Tron uses acquisition to establish Chinese subsidiary

K-Tron International is acquiring the assets of Chinese feeder and ancillary equipment manufacturer Wuxi Chenghao Machinery Co Ltd, based in Wuxi City, 60 miles west of Shanghai. The total cost of the purchase over five years will be $3.5 million.

The acquisition will be completed early in 2007, subject to governmental approval in the People’s Republic of China (PRC) to form a wholly-foreign owned entity (WFOE) which will undertake the purchase and operation of the new subsidiary. The current owner and general manager of Wuxi Chenghai, Mr Wang Hongliang, will join the WFOE, along with Kevin Bowen, senior vice-president of K-Tron, who will be chairman of the WFOE’s board.

“The acquisition of Wuxi Chenghao will be a major step forward in K-Tron’s strategic plan to expand our global leadership position in feeding and pneumatic conveying equipment for difficult-to-handle materials,” commented Edward B Cloues II, K-Tron chairman and chief executive officer. “The domestic PRC market for plastics processing equipment is growing at double-digit rates, and this acquisition will enable us to address the domestic customer base with products designed and manufactured in the PRC and sold in local currency.”

Wuxi Chenghai has 60 employees and designs, manufactures, markets and services volumetric and gravimetric single and twin screw feeders and controls, vibratory trays, pelletizers and pneumatic screen changers.

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