Italian furniture manufacturer Natuzzi has accelerated its branded retail expansion in the Asia-pacific region by signing a partnership with a listed home-furniture player.
The partnership is with Truong Thanh Furniture Corporation (TTF), a leading listed company in the furniture sector, located in Vietnam.
TTF is already an active partner of Natuzzi to produce upholstery in Vietnam for the North American market. TTF in addition plays a key role in the production of furniture for leading furniture names in the USA.
Following the finalisation of this partnership, TTF acquired a 20% stake in Natuzzi Singapore PTE. LTD (Natuzzi Singapore), a controlled subsidiary of Natuzzi S.p.A., for a total cash consideration of $5.4 million already paid in favor of Natuzzi Singapore.
As a result, Natuzzi currently owns 74.4% of Natuzzi Singapore, whereas the other minority shareholder, Mr. Richard Tan, owns 5.6% of the share capital. In addition, Natuzzi S.p.A. maintains the majority of the board of Natuzzi Singapore.
The partnership in Natuzzi Singapore will aim at fostering the commercial development both in the branded retail and in the contract business, as well as strengthening its industrial platform.
Mr. Mai Huu Tin, Executive Chairman of TTF, commented: “Natuzzi S.p.A. is a partner with whom TTF has already started a very important journey in the production of upholstery. We are convinced now more than ever that there is enormous potential in joining forces to further develop our industrial presence in the region but, above all, the retail-branded commercial operations.”
Antonio Achille, CEO of the Natuzzi Group, commented: “I confirm my satisfaction for the joining of Mr. Mai Huu Tin, Executive Chairman of TTF, in this long-term project which has been started by our Chairman and Founder Pasquale Natuzzi. Mr. Tin and I are aligned in sharing the vision and the potential of the Natuzzi products in the Rest-of-APAC.
“With this joint venture we have reinforced our presence in the region to develop the distribution of the Natuzzi brands and exploit the potential in the contract segment, a very interesting opportunity in the Region. The JV will also explore alternative solutions to increase our production capabilities in Vietnam, so to become the Group’s industrial hub covering the unbranded part of the business of our North American operations going forward.”