Shaw Buys Paper Overlay Facility

Helsinki, Finland, June 15--Dynea and Shaw have signed a letter of intent for Shaw to acquire all of the assets of Dynea’s Welcome, North Carolina paper overlays plant for an undisclosed cash consideration. As part of the transaction, Dynea and Shaw will negotiate an agreement for the supply of impregnating resin to the Welcome plant. The transaction is expected to be closed in early June 2005. The Welcome facility, which will become part of Shaw’s Hard Surfaces Group, produces and sells paper overlays to the laminate flooring and decorative melamine laminating industries. This transaction supports Shaw’s production integration strategy in the fast growing market for laminate flooring. The Welcome operations, which operate in Davidson County, North Carolina, generated annual sales of EUR 30 million in 2004. "Dynea has successfully been developing world class products and technology for the laminate flooring industry. Shaw taking over the Welcome facility is a natural progression in the relationship that has developed between our two companies over several years," says Dynea Group president and CEO Roger Carlstedt. He added "Dynea remains committed to being a strategic supplier to the laminate flooring industry with market leading resin and technology solutions both in North America and worldwide." Dynea is a global leader in overlay technology, with plants in the United States, Brazil, Finland, China and Indonesia. In addition to its Paper Overlays business, the Dynea Group, based in Helsinki, Finland, is one of the world’s leading providers of industrial adhesive systems. In 2004, Dynea had combined revenues of EUR 1.1 billion. With 55 production units in 26 countries in Europe, the Americas and Asia Pacific, Dynea has some 3,200 employees.

Related Topics:Shaw Industries Group, Inc.

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