Low & Bonar will build a new factory at Changzhou, in the Yangtze River Delta near Shanghai, China. The new factory will use the group’s unique Colback technology to supply the fast growing and important carpet tile backing and automotive markets in Asia. In the flooring industry, Colback is widely used as a primary backing in carpet tiles, high-grade patterned wall-to-wall carpeting and walk-off mats. The dimensional and thermal stability of Colback prevents carpets from bowing and skewing during processing and makes installation, especially pattern repeat, easier.

The total cost of the investment will be circa £26m spread over two years, starting towards the end of this year and will be funded from the group’s own resources. The set-up of the new factory, which is to be built on a well-established industrial park, will be project managed by an experienced in-house team. Production is expected to begin in 2016 and sales and technical support will be provided by the recently formed team located in Shanghai.

Steve Good, CEO of Low & Bonar PLC, comments, “Our decision to invest in a new factory in China to support the fast growing Asian markets is consistent with the group’s strategy and will consolidate our position as a global leader in the carpet tile backing and automotive markets. The investment is an exciting opportunity to capitalize on our unique technology throughout Asia and to follow, and support, our strategic U.S. customers moving into the region. The new factory will provide a strong platform for further growth.”