Low & Bonar PLC announces that it has established a joint venture company in China, named Yihua Bonar Yarns and Fabrics Co. Ltd, in partnership with Yihua Group of Sinopec Corporation. Low & Bonar has acquired a 50.1% interest in the new company. It contains the business and assets of Yihua Polytiles Company, Limited, a £3m million turnover Chinese manufacturer of technical yarns and fabrics. The business acquired by the joint venture company had net assets of £5 million as at 31 December 2003.

Polytiles currently produces woven technical fabrics complementary to those of Low & Bonar’s subsidiary, Bonar Technical Fabrics. Going forward, the new business is also expected to provide a local supply base from which to build on Low & Bonar’s strong position in artificial grass in China.

Commenting on the purchase, Group Chief Executive Paul Forman said:-

“This joint venture has a clear strategic fit and is a very positive growth opportunity for our increasingly successful Yarns and Fabrics Division. It gives us the opportunity to serve the high growth technical fabrics markets of North Asia and creates a low-cost base from which to access the North American market. In addition, it will provide a local platform from which to further consolidate our leading position in the buoyant Chinese artificial grass market. The discussions leading up to this agreement have been characterised by an excellent spirit of co-operation and I am sure this will provide both parties with an excellent base for further developments.”


Enquiries:

Duncan Clegg, Chairman
Jon Kempster, Finance Director
Low & Bonar PLC		Tel: 020 7298 6820
Alexia Latham
Tulchan Communications		Tel: 020 7353 4200

Editors’ note - Sinopec
Sinopec is a quoted Chinese petrochemical group. In 2003 it reported sales of 443 billion RMB (£29bn) and operating profit of 40 billion RM (£3bn).