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Under the terms of the agreement, Gurit will hold 55% and Mr. Setiyo Budi Nugroho will hold 45% of the shares in the newly founded company PT Gurit Parta Balsa, a manufacturer of balsa wood blocks based in Probolinggo, Java, Republic of Indonesia.
The joint venture foresees an exclusive supply agreement of balsa material from the plantations managed and owned by Mr. Setiyo Budi Nugroho into the joint venture, which will sell the products exclusively to Gurit for further processing and distribution.
The cooperation assures a strong, high-quality source of balsa wood from Java, Indonesia to the global Gurit customer base and leverages both parties` individual strengths – Mr. Setiyo Budi Nugroho as a leading foresting company in Java and Gurit as a leading balsa wood processor and business partner in the global wind energy and industrial balsa markets.
The JV partners have agreed to rapidly invest into the plantations and processing facilities during 2017/18 to accommodate anticipated business growth.
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