The Hong Kong-based Fong’s Industries Co. Ltd. has announced that it has acquired a 100 per cent stake in A. Monforts Textilmaschinen GmbH & Co. KG from Germany-based L. Possehl Co. & mbH. Monforts is based in the western German city of Mönchengladbach.
The acquisition includes Monforts’ Austrian subsidiary Montex-Maschinenfabrik Ges.m.b.H. with its machine production site in St. Stefan. The 50 per cent stake in the Monforts Fong’s Textile Machinery Co. Ltd. (Monfongs), the jointly controlled entity between Fong’s and Monforts Group, is also part of the transaction. In addition, Possehl has agreed to subscribe a 9.9 per cent stake in a Fong’s subsidiary, which directly holds Monforts and Monfongs.
Through their joint venture Monfongs, which was established in 1998, Monforts and Fong’s have already built up a strong and successful partnership. A further milestone in their co-operation is the soon to be inaugurated “textile machine factory of the future” planned in the Chinese city of Zhongshan.
The closing of the deal is subject to approval by the relevant authorities and the customary closing conditions. Fong’s and Possehl agreed not to disclose the financial terms of the transaction.
“Monforts and Fong’s fit together perfectly,” said Mr. Alex Wan, Chief Executive Officer of Fong’s. “Monforts is the leader in innovation in textile finishing machinery. It will considerably strengthen our international competitiveness, which has set course for worldwide leadership and excellence in the textile machinery business.”
Mr. Roland Hampel, Managing Director of Monforts, observed: “Today’s announcement intensifies our long-standing cooperation with Fong’s and opens up new opportunities for Monforts. Innovation stands at the core of our daily work, and we look forward to strategically developing new business areas for our customers with our trusted and successful partners in China.”
One of the main areas of future business that the heads of both companies emphasised is that of technical textiles, a new and innovative technology which offers even more specialised and tailor-made machinery solutions for its customers.
Fong’s Industries Group, founded in 1963, focuses on the design, manufacturing and sale of dyeing and finishing machinery. Its holding company, Fong’s Industries Co. Ltd., was the first of its kind to be publicly listed on the Hong Kong Stock Exchange in 1990. The group has been part of the State-owned China Hi-Tech Group Corporation (CHTC) since 2011.
Monforts is the world leader in textile machinery, having developed cutting-edge technology in finishing machine engineering for more than 125 years. It has its subsidiary company in Austria, Montex-Maschinenfabrik Ges.m.b.H., with a production site in St. Stefan. Including those in Austria, Monforts employs 160 staff and holds a large number of patents.
Monforts offers its customers tailor-made solutions and in future sets to extend its innovation leadership to focus on technical textiles. In 1998, the group entered a jointly controlled entity with Hong Kong-based Fong’s to form Monforts Fong’s Textile Machinery Co. Ltd.