Freudenberg & Vilene International Ltd., Hong Kong, the long established joint venture of Freudenberg and Japan Vilene Co., acquired 100% of the shares of Nantong Hymo Co. in Nantong, Jiangsu Province, China. Nantong Hymo is the market leader in shirt interlinings in China as well as one of the leading finishing companies for woven and weft interlinings in China. It was established in 1985 and is today renowned in China and beyond for its high quality finishing technologies as well as for its exceptional service level and delivery reliability. In 2004, Nantong Hymo generated $22 million in sales, produced more than 30 million square meters of interlinings and employed 292 employees.
The acquisition will further extend the leading market position of Freudenberg & Vilene as dedicated suppliers to the garment industry and further speed up its growth in Asia as the world's largest textile region. After completion of the acquisition, Freudenberg & Vilene's interlining business will have some 1000 employees throughout Asia, will operate five factories in Suzhou/China, Nantong/China, Seoul/Korea, Yang-Mei/Taiwan and Chennai/India and will generate sales of $150 million.
According to the report, the management and staff of Nantong Hymo are pleased with the acquisition by Freudenberg & Vilene International Ltd. Mr. Ge Tong, CEO of Nantong Hymo., will continue to lead the company and be closely integrated into the leadership team of Freudenberg & Vilene. Considerable investment for additional technologies is planned for the near future. Production and sales of Nantong Hymo are expected to grow by more than 10% annually during the next five years as customers benefit from the extended product range and the strengthened service network of the extended company.
The acquisition was facilitated and supported by the Nantong City Government in its goal to shift formerly state-owned assets into reliable private hands and foster growth and prosperity in the Jiangsu province. Nantong Hymo will operate under the new name Freudenberg & Vilene Interlinings (Nantong) Co. Ltd.