Zotefoams acquires joint venture with King Lai

6th Jan 2017 10:35

(ShareCast News) - Zotefoams, a provider of cellular materials technology, has acquired full ownership of its joint venture Kunshan ZOTEK King Lai (KZKL) from King Lai Group.Zotefoams originally entered into the agreement with China-based King Lai in March 2015 to manufacture and sell the company's T-FIT insulation products through the joint venture.The company owned 51% of KZKL under the terms of the original agreement and manufacturing was located in King Lai's factory in Kunshan china.Manufacturing has now been relocated to a state-of-the-art plant, also in Kunshan China, following the grant of a business licence to KZKL in December 2016.KZKL will supply the company's T-FIT insulation products to service the exacting demands of the biotechnology, pharmaceutical and semiconductor industries globally, except for North America as the company has another relationship with a local partner in place there.Chief executive David Stirling said: "With Kunshan ZOTEK King Lai now a wholly owned subsidiary Zotefoams is well placed to fully capitalise on the potential of T-FIT® clean-room products, while also giving us a platform to extend the range of products under the T-FIT® brand during 2017."The share price rose 4.17% to 250p at 1044 GMT on Friday.