By Liz White, UT staff
Toronto-Canadian group McVicar Resources Inc. is to buy 55 percent of Shanghai CPD Construction Products Co. Ltd. Chinese-based but foreign-owned Shanghai CPD currently offers urethane and epoxy coatings, as well as cement-based products for grouting and concrete repair, and cement-based floor hardeners and concrete sealers.
Shanghai CPD, established in 2004, is controlled by Toronto-based chemical supplier CPD Canada, and will continue to supply CPD's products in China. This deal "further strengthens McVicar's position in the industrial chemical sector in China," said a statement from McVicar.
McVicar will invest 10 million RMB, or about CDN$1.5 million in cash, in Shanghai CPD in exchange for a 55.31 percent stake in the company.
McVicar will pay CPD Canada a 2 percent royalty on gross sales of all Canadian, US and Mexican products made and distributed in China by Shanghai CPD. "To date," said McVicar, "all of Shanghai CPD's products and technology have been provided by CPD Canada."
"This acquisition will provide McVicar with a suite of leading products from Canada to the booming construction industry in China," commented Dr Gang Chai, McVicar's CEO, in the statement. CPD's floor coatings for the high end market fit well with McVicar's Kingcom broad-based coating products, and the cement based materials broaden CPD's market reach, he added.
Bruce Crilly, who will continue in his current role as president and general manager of Shanghai CPD, said, "This investment provides us with the necessary capital to enhance our product offering and manufacturing capabilities."
Pointing to growing demand in China's construction and repair markets for higher quality, reliable products, Crilly added that the investment "will allow Shanghai CPD to more aggressively compete in China's vast and lucrative market."