The second arrangement is a letter of intent for an investment by the company’s 50% owned Italian joint venture, Velan Srl, of about $1.1 million for a 67% interest in a greenfield manufacturing plant located in China. The joint venture’s partner is a local valve manufacturer. The plant will produce primarily API 6D pipeline valves and components, and is expected to be operational in the first half of calendar year 2008.
Velan Reports Two New Overseas Joint Ventures
Velan Inc. has entered into a purchase agreement with an investment of about $6.5 million for a 75% interest in a European manufacturer of valves for nuclear and process applications. Current management will continue to hold the remaining 25%.