FULIDA PURCHASES NEUCEL SPECIALTY CELLULOSE
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Fulida Group Holdings, China, has acquired Neucel Specialty Cellulose, Richmond, B.C., Canada, from a consortium of investors led by Wellspring Capital Management and GSC Group. Fulida, together with Zhejiang Fulida Ltd, which had established a minority equity position along with a strategic supply agreement with Neucel in 2010, has assumed full ownership of the company. Financial terms of the transaction were not disclosed.
"We are very pleased to become fully integrated into the Fulida organization given their leadership in the rayon market and their strong support of our Port Alice, B.C., mill. The new ownership enables Neucel to explore new growth opportunities while continuing our aggressive cost and capacity initiatives. Wellspring has been a visionary and dedicated owner of our business and we are very pleased to have helped make this a successful investment for them," said Bob Taylor, president and CEO of Neucel who will continue to lead the business.
"Viscose rayon fiber competition in China has become intense. With the purchase of Neucel, Fulida gains a stable supply of dissolving pulp along with cost advantages and quality assurance that extend the value chain of our business. I strongly believe that this purchase will ensure a stable, sustainable, and rapid development for Neucel, and thus help it to further achieve its unique enterprise value," said Jianer Qi, chairman of Fulida Group Holdings.
Fulida is a global producer of rayon, with several awards to its credit within the Chinese textile industry. Founded in 1988, it is situated by Hangzhou Bay, adjacent to the City of China Light & Textile Industry.
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