UK-based polyolefins foam producer Zotefoams (Croydon; www.zotefoams.com) has signed a joint venture agreement with Japan's Inoac (Tokyo; www.inoac.co.jp) which develops and produces materials from polyurethane, rubber and plastic. The deal, signed in July, is a 50/50-owned sales JV between the two entities and is to be located in Hong Kong and managed by Zotefoams' existing Asian polyolefin team.

With the agreement, Inoac becomes the sole manufacturer and point of sales for Zotefoams' "Azote" line of cross-linked polyolefin foam products in Asia and "Australasia". Inoac has been distributing other Zotefoams products in the region since 2007. Zotofoams has set aside a total of USD 2.2m for the two joint ventures

Initially, the JV will sell products manufactured in Croydon and then shipped directly to customers in the region. In parallel, the two companies will invest in a new production facility located in South Korea to supply locally-made foam products to the JV. The new facility will be adjacent to an existing Inoac manufacturing site. The companies will set up a 50/50-owned manufacturing JV, which will be run by Inoac. The total investment in the new facility is USD 8m (approximately EUR 6m) and is scheduled to commence operations in 2015.

Zotofoams has set aside a total of USD 2.2m capital for the two joint ventures and Inoac will match the contribution as well as purchase the major capital machinery for lease.