Agfa Graphics and Shenzhen Brothers announced today that they have signed an agreement under which they will combine their Greater China and ASEAN activities to create a joint venture.
Shenzhen Brothers started finishing and distribution activities of Agfa Graphics master roll graphic films in 2000. Over the years, Shenzhen Brothers has built up through this partnership, a leading and successful distribution network in the Chinese printing industry.
In recent years, Agfa Graphics has made important investments in both digital prepress and new industrial inkjet printing technology. Today, it disposes over a broad, innovative and competitive product portfolio. Agfa Graphics has its own subsidiaries in the Greater China and ASEAN region and a state-of-the-art printing plate factory in Wuxi, China. Agfa Graphics has also built up important market positions throughout the ASEAN region.
The joint venture, named Agfa Graphics Asia, will be able to fully draw on the infrastructure, technology, manufacturing and distribution strength of its founding companies. It will also continue to have full access to the Agfa Graphics world class technology.
In its first full year of operations, the new company is expected to achieve sales of 200 million Euro. Agfa Graphics will be the majority shareholder with a stake of 51%. Shenzhen Brothers will own 49% of the company. Chairman of the Board will be Mr. Stefaan Vanhooren, President of Agfa Graphics, while Mr. Huang, CEO of Shenzhen Brothers, will become the CEO 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 Stefaan Vanhooren. "This joint venture is an important vehicle in achieving our ambitious growth plans in Asia for digital prepress and industrial inkjet. Shenzhen Brothers' high reputation and strong relationship with local customers, suppliers and government are a major asset to build out a strong and profitable market position."
"Technological innovation and cost leadership will be key drivers for future growth and success," said Mr. Huang. "Agfa Graphics' strong technological position and know-how will allow us to increase our business in both Greater China and ASEAN markets. Its excellent manufacturing capabilities and infrastructure in China will be of great importance in realizing our efficiency targets."
The new company with operational headquarters in Shenzhen (Guangdong) is expected to go life no later than Q3 2010 subject to regulatory approval.