Semperit, Sri Trang finalise demerging of almost all joint ventures

SemperitAustria-based industrial rubber and plastics manufacturer Semperit Group and Thai natural rubber company Sri Trang Agro-Industry Public Co Ltd. Group have finalised the demerging of almost all of their joint ventures as agreed upon earlier this year.

Semperit takes over several Sempermed joint venture companies, the majority interest in the Malaysian Formtech(producer of ceramic moulds for glove production) as well as production companies of the Industrial Sector in China.

Sri Trang takes over the glove production of Siam Sempermed Corporation Ltd (SSC) in Thailand, which had been operated jointly to date.

In Thailand, the joint venture Semperflex Asia (SAC) for the production of hydraulic hoses will be continued.

Semperit received a one-time compensation payment amounting to US$167.5 million (around EUR157 million) before taxes as well as a dividend payment of around US$51 million (around EUR48 million) before taxes from the former joint venture Siam Sempermed (SSC). The cash inflow for Semperit totals around US$200 million (around EUR187 million) before taxes.

Semperitsaid it will remain one of the top ten players in the global market for examination and protective gloves with the Sempermed segment even after the separation. Sempermed is one of the globally leading glove brands and has excellent market access through its dense distribution network in Europe and North America. This access to the market will be strengthened by the full takeover of the sales company Sempermed USA.

On the production side, Semperit operates factories in Austria (surgical gloves) and Malaysia, the world’s largest glove producer. Currently, the capacities in Malaysia are further expanded with the construction of one of the most modern and efficient production facilities of the glove industry.

“The resolution of the joint venture dispute is an important step in Semperit’s long history of success. With this step, Semperit can now fully concentrate on continuing its own successful path. In the Industrial Sector, Semperit is able to proceed its growth course according to plan by further globalising the business and expanding  capacities. In the Medical Sector, Semperit is now fully in charge of its own house. With a strong brand, high-quality products and first-class sales organisation the company has an excellent base for further expanding Sempermed’s market position in the core markets, Europe and the USA. The cash inflow gives Semperit additional power for this strategy. The financial strength now enables the company to push ahead growth investments even better,”Semperit CEO Thomas Fahnemann said.

With the realignment of Semperit’s strategies and the successful termination of its joint ventures with Sri Trang, Fahnemann will be stepping down from his position to seek new professional challenges. He has requested the Supervisory Board to immediately release him from his Management Board contract.

Veit Sorger, as Chairman of the Supervisory Board, expresses his regrets concerning Fahnemann’s decision to leave the company.

“In the past six years, Thomas Fahnemann has guided Semperit into a new direction. Semperit is an internationally successful company with a convincing strategy that has been shaped to a significant extent by Thomas Fahnemann. His personal achievements include the dynamic expansion and realignment of the highly profitable Industrial Sector, the development of our own glove production in Malaysia as well as the resolution of the joint venture dispute with Sri Trang. Thanks to his dedicated management, Semperit is well positioned today and will utilise its growth potential in the best possible way even in a difficult market environment,” Sorger said. A decision on his succession as CEO will be taken in the coming weeks.