Tricorn Group agrees new JV to boost operations in China
WEST Bromwich-based tube manipulation specialist, Tricorn Group, has announced it is to partner with a Chinese company in a deal which will see the joint venture begin the manufacture of larger diameter tubular assemblies.
The new company called Minguang-Tricorn Tubular Products Nanjing Ltd will be fully operational following the approval of its business licence which is expected around the middle of this month.
The JV, formed between Tricorn’s wholly owned subsidiary in China, Maxpower Automotive Components Manufacturing (Wuxi) Ltd and Nanjing Minguang Oil Pipe Company Ltd, will be based in Nanjing. The facility there offers significant scope for expansion and will initially have around 40 employees.
Under the terms of the agreement, Tricorn will own 51% of the JV. Maxpower Wuxi will pay consideration of £0.39m (RMB 3,920,700) into the partnership, funded from short term borrowings, while Minguang’s consideration will be satisfied through the provision of plant and equipment and operational capability. The JV will supply exclusively through Tricorn’s businesses in China and overseas.
Mike Welburn, Tricorn’s chief executive, said: “I am delighted to be announcing the formation of this joint venture with Minguang with whom we have built a strong trading relationship over many years.
“It represents a further significant step in us establishing a growing presence in a key world market. The production capabilities of the joint venture are entirely complementary with those within our Maxpower Wuxi facility and our recent investment in a semi automated painting facility at Wuxi has been specifically designed to accommodate these larger tube assemblies.
“We are already in advanced discussions with our customers in China who have expressed a strong interest in us developing these wider capabilities and we remain very positive about our prospects in the region.”
