Specialist materials group Morgan Crucible has announced that its ceramics division, Thermal, had bought a 70 per cent stake in Chinese group Hubei Kailong ' s ceramic fibre business.
It was announced yesterday that Thermal will pay £1.97 million, which will be made up of a £1.65 million cash payment with the remainder being the licensing of know-how and technology. Morgan Crucible, whose operations include Norton Advanced Ceramics in Rugby and Stourport and Morganite Crucible in Norton, Worcestershire, said the joint venture, its second in China, would enable Thermal to increase its presence there.
Chief executive Warren Knowlton said: "The strategic alliances with well- respected Chinese partners mean that we are well placed to align our superior technology with their knowledge of local production." Morgan's Magnetics division signed a deal in August 2004 establishing a joint venture to produce specialist magnets, used in machinery such as generators.
Morgan Crucible's shares closed at £1823/4p up 3/4p.