3A Composites signs joint venture agreement with Tiansheng New Materials, China

Horgen, 18 April 2011 – 3A Composites, a division of Schweiter Technologies, has signed a joint venture agreement with the Chinese Group Tiansheng New Materials to jointly market structural core materials in China. Tiansheng is an up-and-coming producer of PVC foams. 3A Composites is now the exclusive distributor worldwide of Tiansheng’s core materials.

Growth in the Chinese core materials market has been very strong in recent years and 3A Composites has established itself as a leader in this market with its Airex® foam and Baltek® balsa wood products. The Chinese market will continue its dynamic growth, mainly through the expansion of wind energy. The joint venture will provide the Chinese market with locally produced PVC foam as well as maintaining a steady supply of balsa wood products. Besides focusing on China’s important wind energy market, the joint venture will also engage in structural sandwich applications, e.g. in the bulk freight and marine segments. Each party is investing a lower single-digit CHF million amount in the joint venture.

Tiansheng New Materials is a listed company based in Changzhou, Jiangsu province, with revenues in the region of RMB 350 million and approx. 1,100 employees. Tiansheng has been developing, producing and selling soft foams for some years, e.g. for sports goods and precision seals in electronic components. Tiansheng has been investing in structural foams since 2007 and will pursue its development work with 3A Composites. Having evaluated several potential partners, 3A Composites identified Tiansheng as the company with the strongest product-related and technological position.