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TenCate signs JV for manufacturing protective fabrics
11
Jul '08
Ten Cate Advanced Textiles and Union Textile Industries Public Company Limited of Thailand (Union Textile) have signed an agreement to establish a joint venture with the name of "Ten Cate Union Protective Fabrics Asia Ltd" for the production of work wear and safety wear fabrics in Thailand, an emerging market.

The company will have a share capital of 385 million Baht (approximately €7.5 million), of which TenCate will hold the majority.

The production facilities of the joint venture with a size of approximately 11,000 square meters are located in the Samutprakan district, some 40 km south of Bangkok.

The joint venture will start its operation as per August 16th, 2008 and will have a workforce of approximately 200 employees.

TenCate's contribution will be in cash, in know how and in licensing TenCate's brand names, such as TenCate Tecasafe, TenCate Tecashield and TenCate Millenia.

Union Textile will contribute its present finishing production facilities, an entry into the local Asian market and the associated production and sales organization.

This is the first activity of a non-Asian company in protective fabrics in the emerging Asian market.

As the global market leader in this field, TenCate intends to be actively involved in the latest developments in the Asian market.

The joint venture will have no implications for the employment situation at TenCate in the Netherlands and America.

Ten Cate Advanced Textiles:
The main activity within Ten Cate Advanced Textiles consists of the production of protective fabrics for the work wear and professional wear markets.

TenCate has extensive knowledge of textile finishing, including coating and making fabrics flame-resistant.

Ten Cate Advanced Textiles has production plants in the United States and in the Netherlands and is world market leader in safety fabrics for military and industrial applications.

TenCate has strong brand names in these markets, such as TenCate Tecashield, TenCate Defender M and TenCate Tecasafe.

Many of TenCate's customers have production facilities in Asia. Local supply through the joint venture creates cost benefits and logistic advantages.

Furthermore, the Asian market itself is an emerging market for safety fabrics. As global market leader, TenCate aims at expanding its production base locally in order to optimally serve the growing Asian market for added value functional materials.

For the whole of TenCate the Asian market is of growing importance. Expanding its production locally fits into the strategic goal of global market leadership in its core markets: protective fabrics, aerospace and armor composites, geotextiles and synthetic turf.

Union Textile:
Union Textile is a textile manufacturer covering spinning, weaving and finishing processes with an outstanding quality reputation.

The company was establishedin 1977 and was listed on the Stock Exchange of Thailand in 1994. The major shareholder is Saha-Union Public Company Limited.

A long-standing commercial relationship has already existed between Union Textile and TenCate relating to the supply of high quality fabrics.

Royal Ten Cate


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