Shoujia Technology (00103) plans to establish a joint venture with Beautiful Realm Capital to jointly explore the global industrial rayon product market

Zhitong Finance App News, Shoujia Technology (00103) announced that recently, the company signed a cooperation agreement with Hong Kong Beautiful Realm European M&A Fund (Phase 1) Limited (Beautiful Realm Capital). Based on this, the two sides are initially planning to establish a joint venture with the aim of achieving complementary advantages and strong alliances in the field of tire frame materials, and to jointly develop the global market for industrial rayon products.

According to reports, Beautiful Realm Capital is a German company Cordenka GmbH & Co. Controlling shareholder of KG (Cordenka). Cordenka is the world's leading manufacturer of industrial rayon, a high-performance tire carcass reinforcement material.

The group has long been deeply involved in the field of steel cords. It is the same main supplier of tire frame materials as Cordenka. The customer base of the two parties is highly convergent, and the business complementarity is remarkable. After establishing the joint venture, the two sides will integrate product lines and customer resources to further enhance their voice and brand influence in the global tire supply chain.

Furthermore, the two sides are also highly compatible in terms of sustainable development. The Group continues to increase the proportion of ultra-high strength (ST) and ultra-high strength (UT) steel cord products. A new generation of ultra-high strength (MT) products are gradually being introduced to the market, and has achieved batch supply of products with a recyclable steel ratio of more than 70%. Cordenka's industrial rayon uses wood pulp as a raw material and has a lower carbon footprint than traditional petrochemical materials, fully meeting the low-carbon cycle needs of automakers and tire manufacturers. This cooperation will further promote collaboration between the two sides in the field of sustainable development.