U.S.-based Global Sports Systems completes merger with ACT Corporation of China
With increased worldwide participation in sports and leisure activities, artificial turf provides an ever-growing solution to the maintenance requirements and durability limitations of natural grass. Improvements in areas such as skin abrasion, shock absorbency and grass-like appearance have allowed many international sport organizations to promote the use of artificial turf surfaces as a natural grass alternative.
The acceptance of artificial turf has quickly spread in China in recent years. It has emerged as the world’s second largest artificial turf market – just behind United States.
Two leading companies in the industry are Global Sports Systems based in Round Rock, Texas USA and ACT Corporation of Guangzhou, China. Global Sports Systems is well recognized with its focus on product innovation and experience in the international markets. ACT Corporation has the largest market share in Asia and delivers economies of scale with high production capacity, fully-integrated manufacturing and a strong commitment to quality.
In response to the industry growth and opportunities to share competitive advantages, Global Sports Systems and ACT announced a joint venture in January 2005. The joint venture was an interim approach as the organizations continued to negotiate and align their businesses through a corporate merger.
In a joint-statement issued today, Global Sports Systems and ACT Corporation announce the completion of their corporate merger. The new company will be called ACT Global Sports.
John Baize, Managing Director of Global Sports Systems announces, “We are pleased to complete our merger with ACT Corporation of China. This provides an excellent opportunity to continue our rapid growth, service our Asian customers and supplement our international product offerings. Our joint venture with ACT follows our corporate strategy to deliver superior artificial turf products through innovative technology, integrity and the highest manufacturing quality possible. ACT and its Managing Director, Mr. Lei Ai Xin represent these important principles.”
Lei adds, “Global Sports Systems is an emerging leader in the artificial turf industry. Their excellent reputation, international artificial turf expertise, and product development capabilities are tremendous assets. Through our combined resources and efforts, our value to our customers will greatly increase. We aim to become the global leader of the artificial turf industry”.
In 2004, ACT initiated a strategy to invest US$10,000,000 over three years on production facilities, research, testing equipment and global sales. ACT also acquired BSM in 2004 which has the largest artificial turf market share in China. These investment efforts will be continued in conjunction with the combined companies. Additional Financial terms were not disclosed.
The combined entities have installations throughout the world and relationships in over 35 countries. The headquarters will be in Texas with regional headquarters in China, The Netherlands and Cyprus.
ACT is also focused on quality, as it is one of the drafters of the national turf standard in China. Ditzel continues, “ACT’s reputation for quality is second to none. Leading up to this joint venture, we have already aligned our quality programs and product development efforts. ACT’s state-of-the-art equipment, integrated manufacturing approach and quality culture are keys to their success. We were also impressed by their commitment to utilize the finest raw materials supplied by prestigious companies such as Dow and BASF.”
In fact, ACT has implemented a rigorous quality program and anticipates its ISO9001 and ISO14000 (environmental program) certification by Summer 2005.
