Tarkett has established a new joint venture in Hong Kong with 70 percent ownership. As part of the move, a distribution company will be established in Shanghai with an eye toward accelerating Tarkett’s sales growth in China.
“This is another step to enable us to develop our sales in China. Tarkett already has an excellent brand reputation in flooring for the health and education sectors in China and a strong growth potential,” said Michel Giannuzzi, Tarkett Group ceo.
The Shanghai distribution company aims to achieve revenues of 30 million Euro (approximately $43 million) within three years. It has plans to develop regional sales teams to cover all of China. Currently, Tarkett sales in China are primarily in vinyl resilient flooring. The Tarkett Group, which has been working in China since 2000, is looking to strengthen its position in the resilient flooring market and to broaden its product offering in China.
Tarkett is pursuing its development strategy in other countries as well. In 2002, it began its expansion in Eastern Europe with the acquisition of Sintelon in Serbia. In 2009, Tarkett acquired Fademac, the resilient flooring market leader in Brazil, in order to develop in South America. In 2010, the sales of the Group in emerging countries increased by 24 percent versus 2009, representing 34 percent of Tarkett’s consolidated revenues.
Tarkett creates joint venture in Hong Kong
April 19, 2011