Umeco enters China wind power market in joint deal

Umeco's process materials business has entered into a joint venture with its Chinese distributor Shanghai Leadgo Technology. The joint venture agreement is expected to gain approval from Chinese authorities in the next two months.

The joint venture company, to be named Shanghai Umeco Composites Co, will be 51 per cent owned by Umeco Composites, with Leadgo having a 49 per cent stake.

The joint venture will establish a facility in Shanghai to manufacture vacuum bagging films for the rapidly growing Chinese wind energy market. The new facility should be fully operational by the end of 2011.

Umeco currently manufactures the films supplied to Leadgo for the Chinese market at its facility in Italy.

Clive Snowdon, the chief executive of Umeco, said: "The continued growth of the global wind energy market, despite the economic downturn, reflects the ongoing transition to generating power from renewable sources.

"This joint venture represents another important step in building Umeco's capability in the world's largest wind energy market."

Umeco employs 50 staff at its process materials Aerovac factory in Keighley, West Yorkshire.

In July, Umeco posted a four per cent rise in first-quarter revenues and said it continues to see a recovery in order intake.

Following the Farnborough airshow, Umeco said the orders for 555 civil aircraft announced by Airbus and Boeing were ahead of expectations and bode well for prospects in the civil aerospace market.

Umeco, which makes composite materials for Formula One racing cars, said its order book at June 30 stood at 240.5m, up from 219.9m last year.

Net debt at the end of June stood at 105.3m, down 19 per cent from 130.2m last year.