AGY, which produces fibreglass yarns and reinforcements, says it has both the option and intent to purchase the remaining outstanding shares in the near future.
The acquisition, which sees the expansion of AGY into the Asia-Pacific region, is expected to be finalised in the second quarter of 2009.
“We see significant opportunities in the Asia-Pacific region for market expansion in the high-end electronics markets that require fine yarn capabilities. Additionally, other key markets to AGY, such as aerospace, wind energy and industrial applications, have experienced significant growth in Asia, and we are now in a position to service those requirements locally through the purchase of Shanghai Grace Technology,” says Doug Mattscheck, Chief Executive Officer at AGY of Aiken, South Carolina, USA.
The AGY-managed facility has a current annual production capacity in excess of 18,000 MT of glass fibre, and has potential for expansion. According to Mattscheck, AGY’s goal is to become the pre-eminent independent E-glass yarn manufacturer in Asia.