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LONDON - Zotefoams plc, a manufacturer of supercritical foams, announced Tuesday it has entered into a joint venture agreement with Korean footwear supply chain specialist Seoheung Co. Ltd. to support the construction of a new manufacturing facility in Vietnam.
Under the agreement, Seoheung will invest $10 million for an initial 17.5% stake in the Vietnamese facility’s holding company, with Zotefoams retaining 82.5%. The agreement includes provisions for Seoheung to potentially increase its stake to 35% with an additional $14 million investment, subject to both parties’ approval.
The total project cost is estimated at approximately $32 million, with Zotefoams funding the remaining $22 million through existing debt facilities. The facility is expected to be commissioned in the fourth quarter of 2026.
Seoheung, which manufactures footwear in Korea, Vietnam, Indonesia, and China with annual revenues of approximately $260 million, will provide local manufacturing expertise to the joint venture.
According to the press release statement, the partnership aims to reduce production and transport costs while improving sustainability metrics for Zotefoams’ operations in Asia.
In conjunction with the joint venture announcement, Zotefoams appointed Brandon Thomas as Managing Director - Asia, a newly created position. Thomas, who previously served as General Manager, Asia at Nike (NYSE:NKE) where he led their Air Manufacturing Innovation facility in Vietnam, joined Zotefoams on July 21 and will oversee the Asian investment and joint venture from Ho Chi Minh City.
Ronan Cox, Zotefoams CEO, stated that collaborating with an experienced local footwear manufacturing partner would help the company "ramp-up more quickly and effectively" while ensuring "excellent quality, service and value" to factory partners in the region.
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