ASX Company News: Style Limited Enters Manufacturing Agreement

September 3rd, 2010

Environmentally friendly flooring company, Style Limited (SYP), is pleased to announce that it has signed  a  cooperative  manufacturing  agreement  with  Anji  QiChen  Bamboo  Industry  Company, Ltd., with the objective of becoming a leader in strand woven bamboo manufacturing in China.

QiChen is an Anji based manufacturer of bamboo flooring products, employs around 300 employees and has  a  factory  capacity  of  1 million  sqm.  The  company  is  among  China’s  leading  manufacturers  of bamboo flooring;  its  facilities  are  located  1km  from  Style’s  wholly  owned  production  plant,  Anji Yafeng Bamboo Products Ltd (AYF).  QiChen has been a Style block supplier since 2006. QiChen  is  a  vertically  integrated  manufacturer  (from  bamboo  strips  to  finished  product)  with particular strengths in block production and supply chain management.

Peter  Torreele,  Chief  Executive  Officer  of  Style,  commented  “This  agreement  enables  Style  and QiChen  to  bring  their  complementary  strengths  together  and  create  a  dynamic  and  efficient manufacturing base benefiting from full vertical integration, exceptional quality control and strong R&D. “

The  QiChen  Agreement  allows  both  companies  to  enjoy  economies  of  scale  by  sharing manufacturing assets and management expertise.  Via this agreement, strand woven blocks will be produced in QiChen facilities while finished flooring will be produced in Style’s AYF facility.

www.stylelimited.com

http://www.traderdealer.com.au/Fundamentals/syp

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