KEDA Industrial Group Acquires 40% Equity Stake in SinoCera Create-Tide, Paving the Way for a Global Leading Building Ceramic Production Solution Provider

On July 5th, a strategic partnership signing ceremony between KEDA Industrial Group and Shandong Sinocera Functional Materials Co., Ltd. was held in Dongying, Shandong. Simultaneously, KEDA Industrial Group announced its acquisition of a 40% equity stake in SinoCera Create-Tide, a subsidiary of Shandong Sinocera Functional Materials Co., Ltd. The signing ceremony was attended by a distinguished lineup of individuals, including Cheng BIAN, Chairman of KEDA Industrial Group; Xuexian YANG, Director and Managing Director; Yuejin LI, Vice President and Board Secretary; Fei ZENG, Vice President and Financial Officer; Huojin GUAN, General Manager of Foshan DLT Technology Co., Ltd.; Weiyong CAI, General Manager of KAMI in Hong Kong; Shouli ZHU, Technical General Manager of Foshan HLT Industry Co., Ltd.; Xi ZHANG, Chairman of Shandong Sinocera Functional Materials Co., Ltd; Xibin SONG, Director and Chief Technology Officer; Shaomei Xu, Vice General Manager and Board Secretary; Qiang XIAO, Vice General Manager and Chief Financial Officer; Jun HU, General Manager of the Securities Investment Department; Xiangqian WANG, General Manager of Foshan Sanshui Create-Tide Co., Ltd.; and Lei YU, Executive Director. Tianjie ZHANG, General Manager of SinoCera Create-Tide. Maoli KANG, Secretary of the Party Working Committee and Director of the Administrative Committee of Dongying Economic and Technological Development Zone, witnessed the signing and delivered a speech.


The signing of this strategic partnership signifies another significant step towards KEDA Industrial Group's strategic objective of becoming a " Global Leading Building Ceramic Production Solution Provider ". As a prominent ceramic machinery enterprise, ranked second globally and first in Asia, KEDA Industrial Group possesses a distinct competitive advantage in offering integrated services for complete ceramic factories and production lines. In recent years, KEDA Industrial Group has not only expanded its scope to include consumables and accessories in the field of ceramic machinery but has also bolstered its global business expansion efforts. SinoCera Create-Tide boasts notable advantages in ink pigment & glaze technology, products, and brand. These advantages will facilitate KEDA in expanding its consumables and accessories categories, creating a synergistic effect with KEDA's ceramic machinery business, and achieving the outcome of "1+1>2" through this acquisition.

Targeting Premium Assets: KEDA Industrial Group Expands Its Ceramic Machinery Portfolio

The target of KEDA Industrial Group's recent acquisition, SinoCera Create-Tide, was established in late 2013 as a joint venture between Foshan Sanshui Create-Tide Co., Ltd. and Shandong Sinocera Functional Materials Co., Ltd. The core team boasts over two decades of technical expertise and extensive experience in high-end ceramic pigment & glaze development and production. Their business scope includes the supply of a full range of ceramic pigment, glaze, ink products, and comprehensive design solutions.


It is worth noting that pigments play a crucial role in ink production. Foshan Sanshui Create-Tide Co., Ltd. is among the first Chinese enterprises to engage in the research and production of ceramic pigment & glaze, with substantial accumulations in pigment & glaze development in China. It is also among the pioneering companies in China that have researched and overcome technological barriers in ceramic ink. Foshan Sanshui Create-Tide boasts key domestic technologies and manufacturing processes for ceramic inks and maintains synchronization with its European counterparts in terms of product iteration and development speed.
 
Leveraging Foshan Sanshui Create-Tide's advanced production technology and Shandong Sinocera Functional Materials’s refined management experience, SinoCera Create-Tide has emerged as a leading company in the field of ceramic pigment & glaze and ink in China. Its two flagship high-end brands, "Botao Ink" and "Create-Tide Glaze/Pigment", have gained recognition from a broad range of domestic and international users due to their exceptional product performance. Currently, SinoCera Create-Tide's ink products hold a domestic market share of over 40%.

Hence, the significant advantages of high-end ceramic ink pigment & glaze assets acquired by KEDA Industrial Group are evident. Upon completion of this acquisition, KEDA Industrial Group's ceramic machinery business will be empowered and extended, facilitating stronger interaction and enhancing the bond between KEDA Industrial Group and its downstream customers. Through the synergistic effects of the industrial chain, this collaboration will contribute to the growth of the ceramic machinery business.

Complementary Strengths and Collaborative Efforts for Mutual Benefit
 
As early as 2018, KEDA Industrial Group and SinoCera Create-Tide joined forces in the Indian market, officially promoting the "KEDA Botao" brand of inks.


Over the course of more than 4 years of cooperation, the brand has established a solid foundation and gradually increased its influence in the local market. The acquisition and investment of SinoCera Create-Tide by KEDA Industrial Group open up infinite possibilities for collaboration between the two parties. It is expected that the successful experience in the Indian market can be replicated and expanded to other overseas markets, collectively promoting the growth and strength of the " Low-cost and high-yield model ".
 
SinoCera Create-Tide currently possesses mature and advanced technology and production capacity, and holds a leading market share in China. On the other hand, KEDA Industrial Group, as the world's second-largest supplier of building ceramic machinery , has been deeply rooted in overseas markets for over 20 years, boasting strong and well-established sales channels. Through this collaborative effort, KEDA Industrial Group will fully leverage its subsidiary to expand its overseas ink and pigment & glaze business, thereby contributing to the realization of the strategic goal of Ten Billion Ceramic Machinery. Simultaneously, SinoCera Create-Tide is expected to benefit significantly from KEDA Industrial Group's overseas channel advantages, enhancing its business development scale.
 
Expansion into Consumables and Accessories Business -An Upgraded Phase of KEDA Industrial Group's Ten Billion Ceramic Machinery Strategy

For KEDA Industrial Group, the combination with SinoCera Create-Tide aligns well with its previously stated "Three Ten-Billion" targets, particularly the strategic goal of "Ten Billion Ceramic Machinery".
 
In its 2022 annual report, KEDA Industrial Group stated that starting from 2023, it aims to achieve a "Ten Billion" goal in its ceramic machinery business within a span of five years. While maintaining a strong competitive edge in the building ceramics sector, KEDA Industrial Group intends to expand its reach into non-ceramic industries. The company aims to establish a business structure consisting of 60% ceramic machinery, 20% related products such as accessories and consumables, and 20% universal machinery applicable to other fields such as stone, sanitary ware, refractories, and aluminum profiles. Furthermore, KEDA Industrial Group aspires to become a leading high-end manufacturer of ceramic machinery driven by technology, cost efficiency, and a globally integrated supply chain.


Under the strategic plan of "Ten Billion Ceramic Machinery", KEDA Industrial Group will enhance its existing sales of complete ceramic machinery by adding the provision of accessories, consumables, services, and process optimization. The company will also focus on the cross-domain application of ceramic machinery, covering a diverse product range to meet the varied needs of customers. By transitioning from a machinery supplier to a comprehensive service provider, KEDA Industrial Group aims to gradually achieve its Ten Billion Ceramic Machinery goal.