Masterflex SE — Regulatory Filings 2011

Dec 16, 2011

News Details

Corporate | 16 December 2011 09:51

Masterflex AG: Expansion into Asia

Masterflex AG / Key word(s): Strategic Company Decision

16.12.2011 / 09:51

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Press Release

Masterflex starts expansion into Asia

Gelsenkirchen, 16 December 2011 – Following intensive preparations, the Masterflex Group is now starting its expansion into Asia. The Asian lead company Masterflex Asia Pte Ltd is currently in the process of being established in the city-state of Singapore. Another subsidiary is also being set in motion near Shanghai in China. While the operation in Singapore will focus on the expansion of distribution in the region, as well as the management of all business in Asia, plans for China also include production from 2012 onwards.

With this move to the East, Masterflex, the global specialist for hoses made from high-tech plastics, is driving its growth strategy forwards. 'In Asia, and particularly in China, we see a potential for our hose and connector systems in the medium and long term', says Dr Andreas Bastin, Group CEO. 'Alongside our wide range of products for industrial applications, such as in mechanical and plant engineering, our solutions for the medical as well as food technological expertise for applications in the aviation and automotive industries are in increasing demand on the Asian markets.'

After the successful expansion in Brazil and Russia in 2010, this step means that Masterflex will serve all four BRIC countries in future. Bastin adds: 'With an annual growth forecast of 8%, the BRIC countries hold much greater growth potential than Europe and North America. That is something that we cannot ignore, nor do we have any intention of doing so.'

The move into Asia was preceded by intensive preparations in terms of market research. As Bastin explains, 'We spent more than a year analysing market data and competitors, holding extensive talks with existing or potential customers from Asia, conducting research in the field, visiting trade fairs and speaking to German SMEs with a presence in the area – not least to avoid teething problems as best we can. And now it's all happening.'

Some Masterflex customers from Europe and North America have production facilities in the region. There is also an array of potential new customers, including both companies from the West and Chinese manufacturers that wish to export their products and are therefore very interested in high-quality connector elements.

The Asian business will be managed from Singapore. The manager who will be responsible for this has lived in Asia for more than 16 years and has a wealth of experience in setting up business activities in an Asian context, especially in China.

Once operations are under way in Singapore, Masterflex will commission the first production lines in China in 2012. 'This means that we are not only optimising our new Chinese location, but also reducing our logistical costs and our currency and general business risks', as Bastin describes the process. 'The hoses produced here in accordance with Masterflex standards will cover demand in the Asian market. Consequently, our customers can purchase many of our high-quality products without having to deal with continental transport routes.'

In the medium term, the full Masterflex Group product range will be offered in the region. There are also plans for expansion into neighbouring countries. As Bastin comments, 'The phrase 'Made in Germany' has an excellent reputation here. That is something that we have to turn to our advantage. Not only that, but in view of the uncertainty regarding economic development in Europe and the USA, there is every reason to have another mainstay in this burgeoning economic area of the world.'

The Masterflex Group, based in Gelsenkirchen, is a specialist in the development and production of high-quality connector and hose systems using innovative high-tech plastics. With operational subsidiaries soon to number 14 in Europe, America and Asia, the Group is represented almost all around the world. The many potential uses of high-tech hoses, coupled with outstanding expertise in the processing of high-end plastics, enable Masterflex to provide solutions that would otherwise be inadequate or impossible with conventional materials. The Group's growth is driven by internationalisation and innovation. Masterflex shares have been listed as Prime Standard on the German stock exchange since 2000.

End of Corporate News

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Language:	English
Company:	Masterflex AG
	Willy-Brandt-Allee 300
	45891 Gelsenkirchen
	Germany
Phone:	+49 (0)209 97077-44
Fax:	+49 (0)209 97077-20
E-mail:	annette.littmann@masterflex.de
Internet:	www.masterflex.de
ISIN:	DE0005492938
WKN:	549 293
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of News	DGAP News-Service

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