Agfa teams with Shenzhen for new Asian operation
Jan 26, 2010 at 01:49 am by
Staff
A new joint venture between Agfa Graphics and Chinese distributor Shenzhen Brothers is expected to sell graphic arts products worth 200 million Euros in its first year.
Pitching to the growth markets in Greater China and the ASEAN nations, the new company – to be called Agfa Graphics Asia – will draw on the infrastructure, technology, manufacturing and distribution strength of its founding companies.
Agfa, which has its own subsidiaries in these markets and a modern plate factory in Wuxi, China, says it had built up important market positions throughout the region. Its recent investments have been both in both digital prepress and new industrial inkjet technology, to build a broad and competitive product portfolio, to which the new company wilkl hgave access.
Shenzhen has been finishing and distributing Agfa’s master roll graphic films since 2000, building the partnership to a successful distribution network in the Chinese printing industry.
Agfa Graphics will be the majority shareholder with 51 per cent, and Shenzhen holding 49 per cent of the company.
Agfa president Stefaan Vanhooren will be chairman, and Shenzhen’s Mr Huang chief executive of the new company.
"Agfa Graphics and Shenzhen Brothers have been loyal partners in the past ten years, successfully serving the graphics industry in China," says Vanhooren. "This joint venture is an important vehicle in achieving our ambitious growth plans in Asia for digital prepress and industrial inkjet''.
He says Shenzhen Brothers' high reputation and strong relationship with local customers, suppliers and government are major assets from which to build out a strong and profitable market position.
Huang says technological innovation and cost leadership will be key drivers for future growth and success: “Agfa Graphics' strong technological position and know-how will allow us to increase our business in both Greater China and ASEAN markets,” he says.
“Its excellent manufacturing capabilities and infrastructure in China will be of great importance in realising our efficiency targets."
The new company with operational headquarters in Shenzhen (Guangdong) is expected become operational no later than the third quarter of this year, subject to regulatory approval.
