NORMA Group is to acquire 80% of the shares in Fengfan Fastener (Shaoxing) Co., Ltd. (“Fengfan”), based in Shaoxing City, China.
It's the second acquisition for NORMA this year, following the buy out of Portugese metal clamp firm Lifial. The details of the Fengfan deal are being kept under wraps, but the transaction is expected to close in Q2 2017.
Founded in 1988, Fengfan manufactures joining products made of stainless steel, nylon and specialty materials. Its portfolio includes cable ties, fastening elements and specially coated, fire-resistant textiles, for example. The company uses cutting, coating, casting and injection molding processes in production.
“With the acquisition of Fengfan, we are expanding our product portfolio and our position in the Chinese market,” said Werner Deggim, CEO of NORMA Group. “We are thus working towards our long-term goal of achieving further geographic, product and sector-specific diversification of our business.”
Founder and CEO of Fengfan Mr. Zhu Jialin added: “We look forward to cooperating with NORMA Group. We are confident that the joint venture will enable both companies to realize their strategic objectives. By working together, we will get access to NORMA Group’s global distribution network and market our products globally.”
With around 190 employees, Fengfan supplies to customers in the shipbuilding and heavy industries as well as to manufacturers of transport vehicles. Its products are marketed on the domestic Chinese market and exported to other countries. Its preliminary annual sales amounted to around EUR 15 million in 2016. Fengfan has a production and sales site in Shaoxing City in the Zhejiang Province.
