AIKEN, SC, USA – (March 18, 2009) – AGY, a leading global producer of fiberglass
yarns and high-strength fiberglass reinforcements, announced that it has entered into a Sale
and Purchase Agreement (SPA) with Grace THW Holding Limited to acquire a 70%
controlling interest in Shanghai Grace Technology Company Limited, a producer of E-glass
yarns, with the option and intent to purchase the remaining outstanding shares in the near
The acquisition, which is expected to be finalized in the second quarter of 2009, will
expand AGY’s geographic manufacturing footprint and enable it to service its growing Asia-
Pacific customer base. The Asia-Pacific region represents a large market for AGY products
and technology due to its diverse manufacturing base and continued economic growth. “We
see significant opportunities in the Asia-Pacific region for market expansion in the high-end
electronics markets that require fine yarn capabilities. Additionally, other key markets to
AGY, such as aerospace, wind-energy and industrial applications, have experienced
significant growth in Asia, and we are now in a position to service those requirements locally
through the purchase of Shanghai Grace Technology,” commented Doug Mattscheck, AGY
Chief Executive Officer.
The AGY-managed facility is a world-class, state-of-the art operation with current
annual production capacity in excess of 18,000 MT of glass fiber and expansion opportunities.
“Our goal is to become the preeminent independent yarn manufacturer in Asia by offering Eglass
products with a strong base of local support and manufacturing,” said Mattscheck. “We
are currently building our sales, marketing and customer services teams to capitalize on the
region’s significant growth opportunities.”
Shanghai Grace Technology is a separately incorporated, independent entity from
Shanghai Grace Fabric Company Limited, another company owned by Grace THW Holding
Limited. AGY acquired no weaving operations in the transaction.