DGAP-News: Masterflex AG / Key word(s): Strategic Company Decision
Masterflex AG: Expansion into Asia
16.12.2011 / 09:51
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Press Release
Masterflex starts expansion into Asia
Gelsenkirchen, 16 December 2011 - Following intensive preparations, the
Masterflex Group is now starting its expansion into Asia. The Asian lead
company Masterflex Asia Pte Ltd is currently in the process of being
established in the city-state of Singapore. Another subsidiary is also
being set in motion near Shanghai in China. While the operation in
Singapore will focus on the expansion of distribution in the region, as
well as the management of all business in Asia, plans for China also
include production from 2012 onwards.
With this move to the East, Masterflex, the global specialist for hoses
made from high-tech plastics, is driving its growth strategy forwards. 'In
Asia, and particularly in China, we see a potential for our hose and
connector systems in the medium and long term', says Dr Andreas Bastin,
Group CEO. 'Alongside our wide range of products for industrial
applications, such as in mechanical and plant engineering, our solutions
for the medical as well as food technological expertise for applications in
the aviation and automotive industries are in increasing demand on the
Asian markets.'
After the successful expansion in Brazil and Russia in 2010, this step
means that Masterflex will serve all four BRIC countries in future. Bastin
adds: 'With an annual growth forecast of 8%, the BRIC countries hold much
greater growth potential than Europe and North America. That is something
that we cannot ignore, nor do we have any intention of doing so.'
The move into Asia was preceded by intensive preparations in terms of
market research. As Bastin explains, 'We spent more than a year analysing
market data and competitors, holding extensive talks with existing or
potential customers from Asia, conducting research in the field, visiting
trade fairs and speaking to German SMEs with a presence in the area - not
least to avoid teething problems as best we can. And now it's all
happening.'
Some Masterflex customers from Europe and North America have production
facilities in the region. There is also an array of potential new
customers, including both companies from the West and Chinese manufacturers
that wish to export their products and are therefore very interested in
high-quality connector elements.
The Asian business will be managed from Singapore. The manager who will be
responsible for this has lived in Asia for more than 16 years and has a
wealth of experience in setting up business activities in an Asian context,
especially in China.
Once operations are under way in Singapore, Masterflex will commission the
first production lines in China in 2012. 'This means that we are not only
optimising our new Chinese location, but also reducing our logistical costs
and our currency and general business risks', as Bastin describes the
process. 'The hoses produced here in accordance with Masterflex standards
will cover demand in the Asian market. Consequently, our customers can
purchase many of our high-quality products without having to deal with
continental transport routes.'
In the medium term, the full Masterflex Group product range will be offered
in the region. There are also plans for expansion into neighbouring
countries. As Bastin comments, 'The phrase 'Made in Germany' has an
excellent reputation here. That is something that we have to turn to our
advantage. Not only that, but in view of the uncertainty regarding economic
development in Europe and the USA, there is every reason to have another
mainstay in this burgeoning economic area of the world.'
+++++
The Masterflex Group, based in Gelsenkirchen, is a specialist in the
development and production of high-quality connector and hose systems using
innovative high-tech plastics. With operational subsidiaries soon to number
14 in Europe, America and Asia, the Group is represented almost all around
the world. The many potential uses of high-tech hoses, coupled with
outstanding expertise in the processing of high-end plastics, enable
Masterflex to provide solutions that would otherwise be inadequate or
impossible with conventional materials. The Group's growth is driven by
internationalisation and innovation. Masterflex shares have been listed as
Prime Standard on the German stock exchange since 2000.
End of Corporate News
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Language: English
Company: Masterflex AG
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Germany
Phone: +49 (0)209 97077-44
Fax: +49 (0)209 97077-20
E-mail: annette.littmann@masterflex.de
Internet: www.masterflex.de
ISIN: DE0005492938
WKN: 549 293
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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150043 16.12.2011
DGAP-News: Masterflex AG: Expansion into Asia
| Source: EQS Group AG