SubscribeThis article is a press release from Ansell explaining how it will enhance its presence in China.
Ansell today announced strategic initiatives to significantly enhance its presence in China, in two of its three businesses as follows: -
Consumer Business
Ansell has agreed to acquire a 75% interest in the Wuhan Jissbon Sanitary Products Company Ltd., a leading Wuhan-based Chinese condom supplier. Jissbon is an 80% owned subsidiary of Humanwell High Tech Industry Co Ltd, a publicly listed company (Shanghai Stock Exchange). In the eight years since the condom business was founded, Jissbon has become one of the leading national brands in China's attractive retail market which is estimated at 1.5 billion condoms annually, with projected double digit growth rates. Ansell's CEO, Mr Doug Tough said, "Jissbon is a good fit for Ansell. It has strong brands, an impressive 10% share of the retail condom market and is run by an energetic and progressive management team, who will stay with the business. Jissbon has been a leader in marketing initiatives and will launch Ansell condom brands in China, providing additional growth. We are excited about this opportunity for the fine Jissbon organisation and its employees to join Ansell. With our global capabilities in marketing, manufacturing and product development, we feel that together we can make major gains in China". Ansell will pay approximately US$18 million for its 75% share of Jissbon and has an option to acquire the remaining 25%. With this acquisition, Ansell enters the world's largest consumer market with a population of 1.3 billion people and lays the groundwork for significant growth. The Company is in the process of obtaining Chinese Government approval for the acquisition and expects to close this transaction later in the current half.
Occupational Business
Ansell is also establishing a new trading entity to be called Ansell (Shanghai) Commercial and Trading Company Ltd. This will be headquartered and managed out of Shanghai. Ansell has been selling into the Chinese synthetic Occupational glove market for some years. This market is underpinned by strong manufacturing growth, a high level of foreign investment, and increasingly stringent regulations relating to worker safety and is growing at double digit rates. However, growth potential was limited without a stronger local sales presence and local warehousing and distribution facilities, which have now been addressed.
Mr. Tough said "the development of China as a manufacturing base for the world has been impressive with large numbers of local and international companies creating a manufacturing base there. Ansell will focus its growth on opportunities along the coastal corridor and support the Chinese Government's drive to improve worker health and safety".
Growth Foundation
There will be synergies between the Occupational and Consumer businesses, both in terms of management talent and infrastructure. This step change in Ansell's presence in China also lays the foundation for future moves within that country across Ansell's entire portfolio, including the Professional surgical and examination gloves business.
For further information:
Media
Peter Brookes
Cannings
Tel: (+61) 0407 911 389
Email: pbrookes@cannings.net.au
Investors & Analysts
USA
Rustom Jilla
Chief Financial Officer
Tel: (+1 732) 345 5359
Email: rjilla@ansell.com
Australia
David Graham
General Manager - Finance & Treasury
Tel: (+61 3) 9270 7215 or (+61) 0401 140 749
Email: dgraham@ap.ansell.com
15th February, 2006