The Biesse Group has reached an agreement for the total sale of the company Dongguan Korex Machinery Co. LTD with registered office in Dongguan, China. The value of this transaction is estimated at CNY 183.5 million (Euro 22.5 million) and, if all contractual provisions are met, the deal is expected to be completed by mid-March 2021.
As already pre-announced on 20 December 2019, in addition to the possible production synergies that will also involve the Group's company in India, this operation will lead to a reduction in operating costs that had contributed to accumulating losses of Euro 32 million at Korex.
The expected impact on the Group's consolidated financial statements is a capital gain of around Euro 17 million. The above does not change the conviction that China can remain the main country for the demand of furniture and, more generally, of capital goods, with an expected growth rate higher than the current world average; the Biesse Group intends to maintain and strengthen its presence in the entire Far East area through its branch offices already in the region, dedicating a particular commitment to the Chinese branch (Biesse Trading Shanghai). In the post-sale deal, the Italian and Indian production companies will be therefore more involved in order to satisfy the needs of the chinese market, towards which the Biesse Group - with all its business divisions - remains firmly oriented.
Biesse is a global leader in technology for processing wood, glass, stone, plastic and metal.
