Btr To Expand Asian Joint Ventures

In a presentation to analysts, Strachan acknowledged the days of mega-takeovers that gave the conglomerate annual sales of 10 billion are over. He is refocusing the group to achieve organic growth through investing in what it does best.

But analysts worry that the groups profit margins and cash generation are likely to be eroded during the transition to a strategy of more long-term growth.

The first deal is expected to be in automotive components, where BTR has sales of 15 billion and operating profits of 44 million last year.

John Thompson, main board director responsible for automotive, said: I would hope that in a couple of weeks we will be able to announce a joint venture that will take us into sealing systems in China.

 

The joint venture comes only months after BTR took effective control of Chinas largest manufacturer of vehicle anti-vibration systems.

That deal, in BTRs other key area of automotive technology strength, brought with it agreements to supply Volkswagen Audi, now the biggest carmaker in China.

In packaging, where BTR already controls Chinas largest manufacturer of PET bottles, Great Wall PET, the group is poised to announce a second joint venture agreement sometime very soon.

BTR is also seeking to expand in India. Paul Buysse, director responsible for BTRs 980 million-a-year Power Drives business, said: