Flow International Unveils Asia Growth Strategy
Flow International Corporation (NASDAQ: FLOW), has given further clarity to its growth plans in Asia in conjunction with the start of the 9th China International Machine Tool & Tools Exhibition (CIMES 2009) trade show in Beijing. A key element of these plans is Flow?s relationship with Dardi International Corporation, the leading waterjet manufacturer in China. Dardi is based in Nanjing, China and has three factories near Nanjing and a comprehensive distribution network in China.
Last month, Flow announced that Dardi was the new supplier of its Waterjet ProTM line of machines targeted at the economy segment of the market. In addition to this growing supplier relationship, Flow announced today that it is also in discussions with Dardi to obtain a small minority equity stake in Dardi and for both companies to utilize the other?s distribution capabilities. "Dardi has capabilities that can accelerate Flow?s growth worldwide and in China?, said Charley Brown, Flow International?s President and CEO. ?Dardi is the number one global player in the opening price point, economy segment of the waterjet market, and will provide Flow with a low cost manufacturing base. If our current discussions lead to a mutual distribution arrangement we believe that Dardi will provide Flow with enhanced access for Flow?s products to the high growth China market. Flow?s relationship with Dardi builds on our pending merger with OMAX Corporation to establish Flow as the number one player in every segment of the global waterjet market.?
Flow also disclosed that its discussions with Dardi include the opportunity to increase Flow?s equity investment in the future based on the success of the relationship.
