Business
Acquisition
Acquisition.
About this update from Morgan Advanced Materials Plc
[{"type":"text","content":"\n RNS Number : 4588Z Morgan Crucible Co PLC 14 January 2011 \n \n\n \n \nFor Immediate Release\n14 January 2011\n \nMorgan Crucible Acquires Leading Graphite Supplier to Lithium Ion Market\n \nThe Morgan Crucible Company plc (Morgan Crucible) announced today that it has completed its acquisition of Changsha Hairong New Materials Co., Ltd. (Hairong) in Changsha, China for 64m RMB (£6.15m) in cash from Hunan Caixin Venture Investment Co., Ltd, a local Chinese government entity (51%), three individual investors and two senior managers. The acquisition was made by Shanghai Morgan Carbon Co., Ltd, a joint venture company in which Morgan Crucible has a controlling 70% stake, the remaining 30% being owned by Shanghai Prime Machinery Co Ltd, itself a subsidiary of The Shanghai Electric Group. \n \nHairong, which has been renamed Morgan AM&T Hairong Co., Ltd., is a recognised technical leader in the production of graphite materials for anodes used in lithium ion batteries for portable electronics and electric vehicles. Revenues of the business are forecast to be in excess of 52m RMB (£5m) in 2011 at mid teen operating profit margins. \n \n\"Morgan has been actively developing advanced anode material technology for the lithium ion market,\" said Mark Robertshaw, CEO of Morgan Crucible. \"The addition of Hairong to the Morgan Group fits with our strategic priorities and brings with it the opportunity to benefit from China's expanding demand for electric vehicles and energy storage. Hairong has established itself as the leading supplier of high performance anode materials to the major lithium ion battery companies in China that serve these burgeoning new markets.\"\n \n\"This acquisition complements the Engineered Materials Division's expanding reach into the renewable energy sector and provides another exciting platform for future growth both in the Chinese domestic market and through the Division's global footprint\" said Don Klas, CEO of Morgan Crucible's Engineered Materials Division. \n \nFor further enquiries:\nMark Robertshaw Morgan Crucible 01753 837000\nKevin Dangerfield\n \nRollo Head/Clare Hunt &nbs...