Ewing Management Group Invests $100M in China

2007-06-15 08:22 750

DALLAS, June 15 /Xinhua-PRNewswire/ --

Ewing Management Group (EMG) announced today it completed $100M of investments in two Chinese companies in the first half of 2007. One company, based in Hangzhou, China, is a leading horticulture company in China, applying advanced technologies to the development of a wide range of high-quality plants and flowers. The second company, based in Changzhou, China, is a leading manufacturer of styrene monomer, a chemical used in a broad range of polymer derivatives, ranging from low cost commodity polymers to engineering plastics and synthetic rubber.

The horticulture company holds a large and growing position in the dynamic horticulture market in China, which consists of woody plants and flowers used in commercial and residential landscaping applications. This company is the largest producer of several varieties of woody plants and flowers in China, and it has been growing at a 46% compound annual growth rate over the past four years. The company utilizes an innovative system of plant breeding and fast propagation technologies, including hybrid, mutation, inducing and cloning methods. It operates several advanced R&D centers and production centers throughout China.

The chemical company, currently producing 200,000 metric tons of styrene monomer, is the first producer in China funded by private capital and is strategically located in Jiangsu Province, a region where approximately 60% of all domestic consumption of styrene monomer occurs due to the booming industrial manufacturing base. The styrene monomer market in China is growing rapidly and is being satisfied primarily through imports. The company enjoys a competitive cost advantage over importing countries primarily by virtue of lower product logistics costs and the far lower cost of process equipment in China relative to elsewhere in the world. This has the effect of improving the economic attractiveness on all new-build projects. There are a number of possible expansion projects being studied that can add value to the site within a reasonably short time frame.

Douglas G. Nyhoff, President & CEO of EMG, said: "We are very excited about our first two investments in China. Both companies possess tremendous strengths and significant growth potential. This is an exciting opportunity to combine these companies' strengths with EMG's long track record of financial and operational success, and for us to provide the capital to ignite growth. We will assist the Chinese management teams in financing and executing a strategy of rapid, sustainable growth."

Nyhoff added: "The primary focus for EMG going forward is Asia given the dynamic growth Asian economies are experiencing. We opened an office in Shanghai recently and are excited to be investing $100M in these two very attractive opportunities. EMG brings financial resources, but more importantly, it brings the management and operational expertise needed to assist the companies as they face the challenges of continued rapid growth. The investment by EMG, and its management know-how, will support Chinese management teams as they create jobs for China and secure a leading position in their segments of the dynamic Chinese economy. We look forward to a long and fruitful partnership with the management teams of all our investments. To support further investments in the region, we will be raising a dedicated Asia fund later this year."

About Ewing Management Group

Based in Dallas, Texas, with an office in Shanghai, China, Ewing Management Group is focused on acquiring and managing companies in manufacturing or asset-intensive industries.

Source: Ewing Management Group
Keywords: Food/Beverages