Exel Composites sells the real estate of its closed manufacturing facility in Nanjing, China
EXEL COMPOSITES PLC – – – INVESTOR NEWS – – – 23 August 2022 at 16:00 EET
Exel Composites has signed an agreement to sell the real estate related to its closed manufacturing facility located in Nanjing, China. The closing of the manufacturing facility was disclosed on 28 February 2022 and production was transferred to the company’s other manufacturing site in the Nanjing area during the first half of 2022.
As a consequence of the sale, a gross compensation totaling approximately EUR 6.8 million shall be paid to Exel Composites. The first installment has been paid in connection to the signing of the agreement. The remaining amount shall be paid upon title transfer, which is expected to take place latest in the fourth quarter of 2022.
A one-time cost of EUR 2.3 million related to the consolidation of our company’s two manufacturing facilities in China was already included in the figures and adjusted operating profit of the first half of 2022. The consolidation of the two facilities is estimated to result in annual synergies and cost savings totaling approximately EUR 0.7 million.
Vantaa, 23 August 2022
Exel Composites Plc
Riku Kytömäki, President and CEO