Fong's Industries Co. Ltd. — a Hong Kong-based textile machinery manufacturer that is part of China Hi-Tech Group Corp. — has acquired A. Monforts Textilmaschinen GmbH & Co. KG. — a Germany-based supplier of dyeing and finishing equipment — from Monforts' parent company, L. Possehl Co. & mbH, Germany. The acquisition also includes Monforts' subsidiary, Montex-Maschinenfabrik Ges.m.b.H, and its production site in St. Stefan, Austria; and Monforts' 50-percent stake in Monforts Fong's Textile Machinery Co. Ltd. (Monfongs) — a joint venture established in 1998 by Monforts and Fong's. Possehl will hold a 9.9-percent share of Monfongs.

"Monforts and Fong's fit together perfectly," said Alex Wan, CEO, Fong's. "Monforts is the leader in innovation in textile finishing machinery. It will considerably strengthen our international competitiveness, which has set course for worldwide leadership and excellence in the textile machinery business."

"Today's announcement intensifies our long-standing cooperation with Fong's and opens up new opportunities for Monforts," said Roland Hampel, managing director, Monforts. "Innovation stands at the core of our daily work and we look forward to strategically developing new business areas for our customers with our trusted and successful partners in China."

Wan and Hampel emphasized technical textiles as a prospective business area on which the companies will focus. The companies also plan to establish what they describe as the "textile machine factory of the future" in Zhongshan, China, in the near future.

June 19, 2012