Wednesday, 1 November 2000
Martin Professional A/S has entered into an agreement with the owners of its two Argentinian distributors to establish a joint company, Martin Professional Argentina SA. As of November 1st, the newly established company will handle distribution and service of the group’s products in Argentina. Martin will hold roughly 20% of the shares. The establishment of the new joint company is a natural part of Martin’s market strategy, aimed at securing a foothold in the South American market, which is growing rapidly within the group’s areas of interest. The company will maintain its registered office in Buenos Aires.In Hong Kong, Martin has entered into an agreement to establish a similar company with its local Chinese partners. Martin Professional Hong Kong is expected to be operational before the end of 2000, and will take over distribution from its former Chinese distributor, which wasn’t viewed as allocating sufficient resources to maintain a satisfactory level of performance. Martin will hold 20% of the shares in the company, which will have its registered office in Hong Kong with branch offices in Shanghai and Guangzhou in China.The establishment of these two companies is not expected to have an effect on expectations for the current financial year, although it is expected that they will contribute to increased penetration in these markets during 2001.