K-Tron International (www.ktron.com), a manufacturer of material handling solutions, closed its agreement to acquire certain assets of Wuxi Chenghao Machinery Co., Ltd. ("Wuxi Chenghao"), a privately-owned company in the People’s Republic of China (the "PRC") that manufactures, markets, and services volumetric and gravimetric single and twin screw feeders and controls, vibratory trays, pelletizers, and pneumatic screen changers for use in plastics compounding and injection molding processes. The purchased assets were transferred from the seller to a newly-created Wholly Foreign-Owned Enterprise ("WFOE") established by K-Tron, which will conduct business under the name Wuxi K-Tron Colormax Machinery Co., Ltd. ("Wuxi K-Tron Colormax"). The total cost of the transaction over a five-year period, including the purchase price and payments under related employment and other arrangements with Wuxi Chenghao’s owner, could be as much as approximately $3.5 million.
Wuxi K-Tron Colormax will be located in Luoshe Key Open Industrial Park, Wuxi City, in the Huishan district of Jiangsu province, approximately 60 miles west of Shanghai. The company will initially employ approximately 65 people.
K-Tron International, Inc. and its subsidiaries design, produce, market and service material handling equipment and systems for a wide variety of industrial markets. The Company has manufacturing facilities in the United States, Switzerland, the United Kingdom and the People’s Republic of China, and its equipment is sold throughout the world.
