NEWS
Conclusion of a joint investment agreement related to the establishment of a joint venture in Malaysia
- Promoting the transition to a business model based on local production and consumption, by entering the building materials market in Southeast Asia -
December 5, 2016
Nissha Printing Co.,Ltd.
On December 2nd, 2016, Nissha Industrial and Trading Malaysia Sdn. Bhd. (Malaysia), an industrial materials-related consolidated subsidiary of Nissha Printing Co., Ltd. (hereinafter Nissha Printing), concluded a joint investment agreement with the building materials maker Scanwolf Plastic Industries Sdn. Bhd. (hereinafter Scanwolf Plastic), with a view to establishing a joint venture for the production of Luxury Vinyl tiles.
Background and objective of the joint venture establishment
In August, 2015, Nissha Printing’s Industrial Materials business acquired a metallized paper business. With this product as its main axis, it has expanded the printing-related materials field, and acquired sales channels into new markets, and new core technologies. Meanwhile, with regards to the existing decoration field, the market is expected to enjoy stable growth, and Nissha Printing is working to expand the business on a global base, shifting from the conventional export business model toward one based on local production and consumption.
In 1995, Nissha Printing established Southern Nissha Sdn. Bhd. as a subsidiary in Malaysia, which serves as the production base for the Industrial Materials business in Southeast Asia, manufacturing products for the automobile and home appliance market. On the other hand, Scanwolf Plastic has a strong sales network in the building material and furniture product markets in Malaysia, and also has exceptional extrusion molding technology. In a region of remarkable economic growth, this joint venture will establish a production and sales system in the building materials market, which is expected to see an increase in demand for high value-added products, in addition to the conventional target markets.
Through the fusion with Nissha Printing’s molding and decoration technology, the joint venture will expand its building materials business in Southeast Asia.
In 1995, Nissha Printing established Southern Nissha Sdn. Bhd. as a subsidiary in Malaysia, which serves as the production base for the Industrial Materials business in Southeast Asia, manufacturing products for the automobile and home appliance market. On the other hand, Scanwolf Plastic has a strong sales network in the building material and furniture product markets in Malaysia, and also has exceptional extrusion molding technology. In a region of remarkable economic growth, this joint venture will establish a production and sales system in the building materials market, which is expected to see an increase in demand for high value-added products, in addition to the conventional target markets.
Through the fusion with Nissha Printing’s molding and decoration technology, the joint venture will expand its building materials business in Southeast Asia.
Outline of the joint venture
| Name | Nissha Flooring Industries Sdn. Bhd. |
|---|---|
| Location | Lot PT404, Jalan Bota, 31750 Mukim Belanja, Tronoh, Perak, Malaysia |
| Established | Middle December 2016 (scheduled) |
| Representative | Amir Bin Othman |
| Investment ratio | Nissha Industrial and Trading Malaysia Sdn. Bhd. 65.1% Scanwolf Plastic Industries Sdn. Bhd. 34.9% |
| Business description | Production of Luxury Vinyl tiles |
Outline of Scanwolf Plastic
| Name | Scanwolf Plastic Industries Sdn. Bhd. |
|---|---|
| Location | Lot PT404, Jalan Bota, 31750 Mukim Belanja, Tronoh, Perak, Malaysia |
| Established | September 1993 |
| Representative | Dato’Tan Sin Keat |
| Business description | Designing & manufacturing of plastic extrusions and manufacturing of PVC compounding |
| Net sales | RM 34.265million（year ended June 2016) |
Outlook for the Future
The effects on the consolidated performance of Nissha Printing from this incident are expected to be minor. Notifications will be made promptly should any necessity for revision of performance forecasts or matters that should be disclosed arise.
Schedule
Date of execution of the agreement：December 2, 2016
Date of the joint venture establishment：Middle December 2016 (scheduled)
Date of the joint venture establishment：Middle December 2016 (scheduled)
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