NORMA acquires majority stake in China’s Fengfan Fastener
15 May 2017
NORMA Group has signed a purchase agreement to acquire 80% of the shares in Fengfan Fastener (Shaoxing) Co Ltd based in Shaoxing City, China.
Subject to regulatory approval, the transaction is expected to close in the second quarter of 2017. Financial details of the agreement were not disclosed. Founded in 1988, Fengfan manufactures joining products made of stainless steel, nylon and special materials. Its portfolio includes cable ties, fastening elements, and specially-coated, fire-resistant textiles.
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,” says Werner Deggim, CEO of NORMA Group. “We are working towards our long-term goal of achieving further geographic, product and sector specific diversification for our business.”
Fengfan’s founder and CEO, Zhu Jialin, adds: “We look forward to cooperating with NORMA Group. We are confident that the joint venture will enable both companies to realise their strategic objectives.
By working together, we will get access to NORMA Group’s global distribution network and be able to market our products globally.”
With around 190 employees, Fengfan supplies customers in the shipbuilding and other heavy industries, as well as manufacturers of transport vehicles. Its products are marketed on the domestic Chinese market and exported to other countries. Fengfan’s preliminary annual sales amounted to about €15 million in 2016. The company has a production and sales site in Shaoxing City in Zhejiang province.
NORMA receives Volvo Quality Excellence Award NORMA Group has also been honoured by Volvo Car Corporation as an outstanding supplier for the first time.
The Volvo Cars Quality Excellence (VQE) Award was presented for excellent performance in the areas of quality, logistics, customer service and other criteria. NORMA Group in Poland has been supplying systems for oil and cooling water transport among other products to Volvo Car Corporation for the past eight years.
Urszula Witkowska, managing director of NORMA Group in Poland, received the award at Volvo Car Corporation’s headquarters in Gothenburg, Sweden.
Around 550 employees at NORMA’s Pilica site manufacture numerous joining products made of plastic, such as quick connectors, urea, oil and gasoline lines, as well as ventilation hoses. Besides Pilica in Poland, NORMA Group plants in Germany, the Czech Republic, Sweden and Serbia, among other countries, manufacture products for Volvo.
