Business
Joint Venture
Joint Venture.
About this update from Essentra Plc
[{"type":"text","content":"\n \n \n RNS Number : 6243I\n Essentra plc\n 02 April 2020\n \n \n \n \n ESSENTRA PLC\n \n \n ESTABLISHMENT OF FILTERS JOINT VENTURE IN CHINA - COMPLETION\n \n \n \n \n \n \n \n \n Further to the announcement on 6 December 2019, Essentra plc (the 'Company') is pleased to confirm that with the completion of certain ancillary documents as required under the joint venture (JV) agreement, all JV partners have made the relevant initial capital investment as required for completion of the establishment process for the new JV company, China Tobacco Essentra (Xiamen) Filters Co., Ltd.\n \n \n The Company's total capital contribution to this JV is US $10.3m, which will be made in three equal installments over the course of the coming eighteen months, the first of which has been completed earlier today.\n \n \n Factoring in delays being caused by the situation with COVID-19, the Company's current best estimate is that the JV will commence construction and fit out of the new plant and machinery in Q3 2020. The Company expects the JV to ship first production volumes to local customers in Q1 2021, at the earliest.\n \n \n Commenting on today's announcement, Paul Forman, Chief Executive said: \n \n \n \n \n \n \"I am very pleased with the establishment of this particular strategic 'game changer' for Filters. As highlighted in our COVID-19 Update announcement (dated 27 March 2020), whilst there had been some limited impact on trading from COVID-19 in the first two months of the year in the China Filters business, demand has now returned back to more normalised levels. The Filters business is non-cyclical in nature, and hence underlying customer demand is expected to remain robust. Hence, even though we are currently going through unprecedented macroeconomic times, we continue to drive on our strategic initiatives, such as this Chinese JV. Having said that, the Company's three main priorities during these challenging times remain our current focus\n ; employee physical and emotional wellbeing, continued high levels of customer support, and cash conservation\n \". \n \n \n \n \n \n Enquiries\n \n \n \n \n \n \n \n \n \n Essentra plc\n \n \n Aamir Mohiuddin, Investor Relations Director\n \n \n Lucy Yank, Group Communications Director\n \n \n Tel: +44 (0)1908 359100\n \n \n \n \n \n \n \n \n Tulchan Communicatio...