Globe Union Industrial Corporation Board (Listing 9934.TW) announced on June 17th an agreement for a new overseas Joint Venture with Thai-Kin Co., Ltd. (Listing 6629.TW) Total of USD 28 Million will be invested by both parties to build a manufacture facility for kitchen and bathroom faucets, based out of Chonburi, Thailand; the current home of Thai-Kin. Globe Union will hold 51% of the Joint Venture company, and Thai-Kin will hold 49% shares.
This Joint Venture cooperation is another step to facilitate Globe Union’s China+1 Strategy in expanding oversea manufacturing bases, diversify global supply chain, with intention to incorporate the integrated core faucet manufacturing process to the Joint Venture company. It is expected in early 2021, the new Joint Venture company will be in production.
Thai-Kin Co., Ltd is the world leading manufacturer of bath and furniture accessories, specialized in zinc alloy casting, located in Thailand and sell to its customer worldwide. Thru this Joint Venture partnership, Thai-Kin will be expanding its current footprint to add faucet production and manufacturing. Combining the vast experiences of Globe Union within the faucet industry, with the equally impressive background Thai-Kin shares in the bath accessory market, both companies will have flexibility to expanding their own business, and to provide offer a broader portfolio of products to its partners.