Fulida Buys Neucel Specialty Cellulose

Feb. 7, 2011 - Fulida Group Holdings Ltd has purchased Neucel Specialty Cellulose Ltd. from a consortium of investors led by Wellspring Capital Management and GSC Group. Fulida, together with Zhejiang Fulida Ltd, which had established a minority equity position along with a strategic supply agreement with Neucel in 2010, is now assuming full ownership of the company.

Financial terms of the deal, which was finalized on Feb. 2, were not disclosed.

“We are very pleased to become fully integrated into the Fulida organization given their leadership in the rayon market and their strong support of our Port Alice Mill. The new ownership enables Neucel to explore new growth opportunities while continuing our aggressive cost and capacity initiatives. Wellspring has been a visionary and dedicated owner of our business and we are very pleased to have helped make this a successful investment for them,” said Bob Taylor, President and CEO of Neucel who will continue to lead the business.

Jianer Qi, Chairman of Fulida Group Holdings, said, “Viscose rayon fibre competition in China has become intense. With the purchase of Neucel, Fulida gains a stable supply of dissolving pulp along with cost advantages and quality assurance which extends the value chain of our business. I strongly believe that this purchase will ensure a stable, sustainable and rapid development for Neucel, and thus help it to further achieve its unique enterprise value.”

About Fulida Group Holdings Ltd.
Fulida Group Holdings Ltd. was founded in 1988. It is situated by Hangzhou Bay, adjacent to the City of China Light & Textile Industry. Fulida Group Holdings is a highly integrated textile manufacturer with “Fulida” as a widely recognized brand name. It controls nine major companies including textile, printing and dyeing, thermal electricity, viscose fiber, chemical, foreign trade and real estate etc.

About Neucel Specialty Cellulose Ltd.
Neucel produces hemlock based high-purity chemical cellulose that is used in a wide range of manufacturing processes including rayon filament for garments, pharmaceuticals, consumer products, film, food thickeners, LCD screens and other products.

SOURCE: Neucel Specialty Cellulose Ltd.