Skellerup spends US $ 1.1 million for a minority stake in a US rubber company

Skellerup Holdings purchased a 35% interest in Sim Lim Technic, a manufacturer of liquid silicone rubber from Wisconsin, for $ 1.1 million.

Skellerup, based in Auckland, wants to extend the liquid silicone rubber manufacturer's technical expertise to a broader market, claiming that the product is ideal for sterile environments and use in medical products and high precision consumption. The shares fell 0.5% to $ 1.93, and are approaching the record of $ 2.07 reached last month.

"We will combine Skellerup's knowledge and reach with Sim Lim's technical expertise to provide high quality solutions to existing and new OEM customers," said Skellerup CEO David Mair. a statement. "We are focusing our efforts on the US, our largest market, and with our US Gulf operations, we are seeing more and more opportunities for LSR products not only in the United States, but in the United States. the whole world.

Skellerup refocused its manufacturing unit in recent years after falling oil and iron ore prices weighed on profits, and is now putting more emphasis on less volatile sectors of the economy. drinking water and sewage. The company raised its profit in the first half of 31 percent and has already indicated that the annual profit would be $ 24.5 million to $ 26 million in June 2018.

(BusinessDesk)

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