With increased global demand for sustainable and innovative footwear solutions, Zotefoams Plc (LON:ZTF), a world leader in supercritical foams, has entered into a joint venture arrangement with Seoheung Co. Ltd., a footwear supply chain specialist with extensive experience in the Asian market.
Key Benefits of the Joint Venture:
- Establishment of a new manufacturing facility in Vietnam, which will support the Group’s growth ambitions in the region.
- Reduced financial and technical risks associated with the project, with Seoheung bringing decades of experience in the Asian footwear industry.
- Access to proven Asian manufacturing expertise, with Seoheung providing local knowledge and assistance in providing greater longer term market access.
- Enabling Zotefoams to continue serving and working in collaboration with all its customers in the footwear business.
Seoheung Co. Ltd. is a footwear supply chain specialist with a proven track record of manufacturing footwear in Korea, Vietnam, Indonesia, and China. The company plays a key sourcing role for major footwear producers, including Changshin Inc., and continues to grow steadily through ongoing innovation, with annual revenues of approximately $260m.
The Joint Venture will be executed by a newly established holding company for the Vietnamese facility, with Seoheung investing $10m for an initial equity stake of 17.5% in the holding company.
| Investment Details | $ Amount | % Stake |
|---|---|---|
| Seoheung’s Initial Investment | $10m | 17.5% |
| Seoheung’s Potential Additional Investment | $14m | up to 35% |
The proceeds of Seoheung’s investment will be applied to the commissioning of the facility, expected in Q4 2026, with the project expected to cost a total of approximately $32m.
Brandon Thomas, a seasoned executive with extensive experience in the Asian footwear industry, has been appointed as Managing Director – Asia, a newly created role that reflects the strategic importance of this region to Zotefoams’ growth ambitions.
“The Joint Venture with Seoheung will provide significant benefits to our investment in Asia,” said Ronan Cox, Zotefoams plc CEO. “Collaborating with an experienced local footwear manufacturing partner significantly de-risks the project from a financial and technical perspective and will enable us to ramp-up more quickly and effectively as well as guarantee excellent quality, service and value to all our Tier 1 factory partners in the region.”
With the appointment of Brandon, Zotefoams is well-positioned to capitalise on the substantial growth potential of the footwear business in Southeast and East Asia, and to deliver attractive returns for its shareholders.
The Joint Venture is a significant step forward in Zotefoams’ strategic evolution from supplying traditional foam sheets to producing advanced 3D preforms for the athletic footwear market.
The collaboration between Zotefoams and Seoheung de-risks the Group’s Asian investment from both financial and technical perspectives. By partnering with an experienced local manufacturer, Zotefoams gains immediate access to proven Asian manufacturing expertise, while sharing project costs and operational risks.
With its extensive experience in the Asian footwear industry, Seoheung brings decades of knowledge to the partnership, including deep understanding of Vietnam’s manufacturing landscape.
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