The first part of the agreement creates a joint venture between Flint Ink and Graphic-Tech, Flint Ink’s long-time product distributor in Hong Kong and China. In the second level of the agreement, Flint Ink – Graphic Tech Holding Company Limited becomes a majority partner with four major Beijing newspapers to establish Flint Ink (Beijing) Printing Ink Company Ltd., and build an ink manufacturing plant there.
Participating newspapers are the Beijing Youth Daily, Economic Daily, Workers Daily and Army Daily.
Henry Leong, general manager of Flint Ink Asia, was instrumental in structuring the joint venture. “Beijing is the largest newspaper printing region in China, making it an excellent location for Flint Ink to build a news ink manufacturing center,” Mr. Leong said. “Our partnership with four large newspapers is very beneficial to both sides. We have an immediate outlet for our products and they have a local supply of high quality products, backed by a world leader in ink manufacture.”
“Graphic-Tech is our primary news ink distributor in China and Hong Kong, and that partnership allowed us to join with these newspapers to develop a joint venture that would be mutually beneficial for everyone,” said Kathy Marx, Flint Ink’s vice president, marketing and strategic planning. “It is extremely beneficial to have Henry involved, as he is so experienced in that market.”
In addition to manufacturing news inks from raw materials, the new plant will serve as a blending center for heatset inks.
“China’s economy is growing at 7.4 percent and the printing industry is growing even faster—an annual rate of 10 percent for the past three years,” noted Damian Johnson, president, Flint Ink Asia/Pacific. “Population growth, growing literacy and a much more internationally oriented economy will continue to drive printing growth for the foreseeable future. This joint venture will allow us to enter the market on a solid footing.”
Pending regulatory approvals, construction on the plant is expected to begin in the fourth quarter 2002 in the Daxing Industrial Development Area, Beijing, and scheduled for completion in the fourth quarter 2003.