Vienna – Austrian rubber company Semperit and its Thai partner Sri Trang have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series of legal disputes between the partners.
Under the agreement announced 18 Jan, Semperit will take over the joint Sempermed distribution company in the US as well as production companies of the industrial sector in China. Sri Trang will take over the joint glove production in Thailand.
Semperit will receive a compensation payment of €157 million as a result of the demerger.
Together with the demerger, mutual agreement has been reached with regards to the settlement of the arbitration proceedings and the legal disputes, said Semperit.
According to Semperit, the process will have negative special-effects of €30 to €40 million in the company’s consolidated financial statements of 2016.
The Austrian company, however, predicted a positive effect of €100-€115 million in 2017.
“After the settlement of the legal disputes, we can fully focus on the development of our own business,” Semperit CEO Thomas Fahnemann said.
Fahnemann said his company will focus on industrial and medial sectors.