Taiwan tile maker Champion to expand in China market with $21.6 mil. investment
TAIPEI, NNA – Taiwanese ceramic tile maker Champion Building Materials Co. aims to do more sales in China through a 150 million yuan ($21.6 million) co-investment with a Chinese peer.
Champion Building Materials plans to set up a fully-owned Chinese subsidiary with assets as capital that will be valued at up to 135.8 million yuan, the company said Tuesday in a notice to the Taiwan Stock Exchange.
Guangzhou Seagull Kitchen and Bath Products Co., a Chinese firm specialized in high-end home remodeling materials, will then acquire at least a 56.54 percent stake in the subsidiary, or 76 million yuan, and kick in 20 million yuan in cash.
Seagulls’ plan to expand its bath and lavatory furnishing business matches with Champion’s expertise and goal, which has helped to make the collaboration happen, Champion Building Materials spokeswoman Wenny Liao told NNA Thursday.
“We expect the collaboration will help…grow our business through the new marketing channels introduced,” she said.
Guangzhou Seagull Kitchen and Bath Products logged 2.57 billion yuan in revenue last year, up 15.5 percent over 2018, its notice to Shenzhen Stock Exchange shows.
Headquartered in central Taiwan’s Miaoli County, Champion Building Material owns four tile and engineering brands. Taiwan and China account for 99 percent of its revenue.
Its Taiwan plant runs nine production lines with a combined annual capacity of 10.64 million square-metered tiles for domestic demand. The company says its China factories, also a total of nine, supply local and international markets with a combined annual production of 15.04 million square meter tiles. Taiwan production contributes 52 percent to revenue and China 48 percent, Liao said.
Champion Building Materials reported monthly revenue of 154.4 million New Taiwan dollars ($5.1 million) in February, up 8.9 percent over the same month of 2019, according to its notice to the stock exchange.
The two companies have yet to reach final agreement, Champion said in a separate notice to the exchange.