The following announcement was received this week from Dong Fang which announces their intention to form a joint venture with Fosber to produce Corrugators in China. This is a very exciting development that will further cement both companies as world leaders in the field of Corrugated Machinery.
Dear Madams / Sirs:
By this letter we wish to give you news about a very exciting and important commercial development between Dongfang and Fosber, which will officially be concluded within the next six months.
This development is not only very ambitious but extremely significant for both Dongfang and Fosber. Its primary objective will allow us to attain more market shares in some very substantial new emerging markets for corrugators business. This will not only strengthen the long term security of our future but will also allow us to further develop and grow.
Dongfang was founded in 1996 and has been focusing on developing and manufacturing high-end corrugated converting machines in the past 17 years. We are now the market leader in the Chinese corrugated packaging equipment industry. Dongfang, led by a stable and vibrant management team, has secured considerable market success not only in our local Asian markets but also across Europe. USA and other Western territories.
Fosber is also a well-known company in this industry, which was founded in 1978 as a prestigious Italian manufacturer of complete corrugator line; it is one of the two main leading manufacturers of high-speed wide corrugated production line. Even as a leading company, Fosber pursue the opportunity of entering into the increasingly important emerging market especially China and India markets to maintain its continuous growing momentum.
Dongfang and Fosber agreed to jointly create a locally based production facility in China for the manufacture of a high-end complete new corrugator line to be specifically designed and marketed for the Asian market (in particular for China and India). By combining Fosber’s corrugator technical know-how with Dongfang’s proven capabilities of managing and marketing what is a very successful machinery production facility in China, it is not unrealistic to forecast that this enterprise will very quickly become the market leader in these fast growing target territories.
As the discussions on the joint venture progressed, Dongfang and Fosber have respectively grown to know each other very closely. Dongfang appreciated the very strong standing and reputation that Fosber has gained in the Western markets as one of the two main leading corrugator suppliers. At the same time, Fosber was most impressed with the high quality of Dong fang’s product and organization, but also the youth and vigor of the organization. Considering keeping the continuous growth of Fosber Group and rendering the new joint venture with Dongfang much more binding and far grander on an economic scale, it has been formally agreed in principal that Dongfang will acquire a majority shareholding in the Fosber group.
All the interested parties are fully concordant and committed in a unanimous and clear declaration that Fosber’s existing policies and business organisations in the Western world will remain totally unchanged, guaranteeing that all customers will continue to receive all businesses and services as usual”. Fosber’s established corrugator lines will continue to be 100% produced, manufactured and serviced from either Europe or the USA in exactly the same way as today, without any effect or influence whatsoever from the new joint venture in China. All management and technical teams within the Fosber Group shall remain in place without any changes.
With the vision of becoming a worldwide leading company of manufacturing high-quality packaging and printing machines, Dongfang will continuingly create value for our clients with high efficiency. With our persistence and your consistence support, Dongfang is making steady progress shouldering the mission of leading Chinese corrugated packaging equipment industry to the world.
All the staff of Dongfang remains at your complete disposal should you have any further questions or if need any further clarification or information.
Yours faithfully,
Chairman: Victor, Zhuo Lin, Tang
Guangdong Dongfang Precision Science & Technology Co., Ltd
October, 15, 2013
