A Midland aerospace firm has agreed a joint venture deal to supply into the growing Chinese wind energy market.
Leamington-based supply chain services firm Umeco will work with its Chinese distributor Shanghai Leadgo to manufacture vacuum bagging films to be sold in China.
The joint venture company Shanghai Umeco Composites Co will be 51 per cent owned by Umeco, with Leadgo having a 49 per cent stake.
The joint venture agreement is subject to approval from Chinese authorities. It is anticipated this will be granted within the next two months.
Umeco currently manufactures the films supplied to Leadgo for the Chinese market at its facility in Italy but made the move to take advantage of the global growth in the wind energy market.
The total investment in the plans will be £2.64 million, which will be funded by a £1.54 million cash investment and a “1.1 million shareholder loan facility.
Leadgo will also make a similar investment and provide a similar loan.
Umeco chief executive Clive Snowdon said: “The continued growth of the global wind energy market, despite the economic downturn, reflects the on-going transition to generating power from renewable sources. This joint venture represents another important step in building Umeco’s capability in the world’s largest wind energy market.”