ERJ staff report (SS)
Yanzhou, China -- Veyance Technologies Inc. has formed a long-term joint venture company with Yinhe Group's Ruiyuan Rubber and Plastics Co. Ltd, which will be operate under the name of Shandong Aneng Conveyor Belt & Rubber Co. Ltd.Â
The new joint venture will also have a tentative agreement to purchase exclusive rights to the Yinhe Depreux brand in China.
Veyance will be the majority shareholder of the joint venture, which will bring together Ruiyuan's existing infrastructure with Veyance's technology and becomes China's largest conveyor belt maker. Veyance said the new company has 20 production lines and produces more than 12 million square meters of high quality fabric- and steel-cable-reinforced rubber conveyor belts each year, as well as fabric-reinforced PVC conveyor belts.
"This joint venture is a perfect fit for Veyance," said Chris Jones, vice president and general manager of Veyance's Asia-Pacific region, in a 16 Jan statement.
According to Jones, the alliance provides substantial growth opportunities and is designed to create technology synergies, operating efficiencies and raw material sourcing opportunities, he said.
Jones added that the joint venture has adopted advanced management and quality systems and is using technologically advanced test equipment to ensure that all finished products meet stringent conformity standards.
Teng Niu, CEO of Ruiyuan, said that the arrangement provides customers substantially increased value through Veyance's product technologies, including low-rolling resistance cover materials, Goodyear SensorGuard belt monitoring systems and patented splice processes.
In addition to conveyor belts, Veyance manufactures and markets Goodyear-branded industrial power transmission products, hose, hydraulics and rubber track, as well as automotive and truck power transmission products, hose, air springs, tensioners and moulded products.
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Press release from Veyance