Ninestar’s Static Control Buys Stake in Jadi Imaging
Jadi Imaging Holdings announced on August 20th that Static Control Components – which is owned by Ninestar Corporation, a China-based company that also owns Lexmark International along with other investors – has made a stratetic investment in Jadi and also entered into a supply agreement with Jadi.
Jadi Imaging, which is headquartered in Malaysia, manufactures and sells toner and ink for use with printers and copier/MFPs, as well as toner cartridges. Ninestar purchased U.S.-based Static Control, a third-party manufacturer of toner cartridges, for $62.97 million in 2015.
Jadi said Static Control is said to have a 9.09 percent stake in Jadi, and will have board representation.
The company’s board of directors “is confident that the investment from this strategic collaboration will provide opportunities to diversify into many exciting new areas, in particular, the possibilities of cooperating further in OEM contracts and developing new business streams with less competition and higher profit margin.”
Jadi stated that the partnership with Static Control will provide it with early access to new cartridge configurations in the aftermarket industry, further enhancing Jadi’s R&D in formulating and developing chemical toners.
Jadi also stated that Ninestar’s 2018 fiscal year saw an overall net profit of $93.73 million, an increase of 153.89 percent from the previous year. Ninestar is also said to have reported “a net profit growth” for its first quarter of 2019, compared to the previous quarter of 439.48 percent, along with an increase of 1.70 percent in sales revenue.
According to Jadi, Ninestar’s annual toner consumption is approximately 8,000 metric tons, while Jadi’s total toner-manufacturing is 6,000 metric tons per year. Jadi says this ideally positions it with the access to market by becoming the first toner manufacturer that Ninestar has purchased an equity stake in, and designated as a preferred supplier of conventional and chemical toners.
The two companies have also entered into a supply agreement, under which Static Control will purchase toner formulated and manufactured by Jadi for three years, beginning in April 2020. Jadi will also supply toner to Ninestar and its subsidiaries.
“We are confident that the investment from this strategic collaboration will provide opportunities to diversify into many exciting new areas, in particular, the possibilities of cooperating further in OEM contracts and developing new business streams with less competition and higher profit margin,” Jadi stated.
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