PORT ALICE – A Chinese textile company celebrated Chinese New Year with a new acquisition: the Neucel Specialty Cellulose pulp mill.
Fulida Group Holdings Ltd (Fulida) has purchased Neucel from a consortium of investors led by Wellspring Capital Management. Fulida, together with Zhejiang Fulida Ltd, which had established a minority equity position in 2010, is now assuming full ownership of the company. Financial terms of the transaction were not disclosed.
Employees at Neucel were told the news Feb. 3. Current management, led by President and CEO Bob Taylor, is expected to continue the day-to-day operations of the mill.
“We are very pleased to become fully integrated into the Fulida organization given their leadership in the rayon market and their strong support of our Port Alice Mill,” said Taylor in a press release. “The new ownership enables Neucel to explore new growth opportunities while continuing our aggressive cost and capacity initiatives. Wellspring has been a visionary and dedicated owner of our business and we are very pleased to have helped make this a successful investment for them.”
Fulida is one of the leading producers of rayon in the world with several awards to its credit within the Chinese textile industry.
“Viscose rayon fibre competition in China has become intense. With the purchase of Neucel, Fulida gains a stable supply of dissolving pulp along with cost advantages and quality assurance which extends the value chain of our business,” said Jianer Qi, chairman of Fulida Group Holdings. “I strongly believe that this purchase will ensure a stable, sustainable and rapid development for Neucel, and thus help it to further achieve its unique enterprise value.”
Wellspring offers their well wishes.
“We are very proud of what Neucel has accomplished in recent years. The mill’s success is a result not only of our investment, but of the vision and commitment of our management team, the hard work of the mill’s employees, and the support of local officials and governments,” said Joshua Cascade, a partner of Wellspring. “Today, the Neucel mill is a symbol of Port Alice’s stability and future, and we believe it will continue to thrive as part of Fulida. We are honored to have partnered with Bob Taylor and his team and the town of Port Alice, and wish them every success in the future.”