Hong Kong-based firm Spring Capital Asia has invested up to $10 million for a substantial minority stake in Shanghai Insuring Polymer Materials, an energy-saving company, according to Vincent Chan, chief executive of Spring Capital.
Established in 2003, and based in Shanghai, Insuring specialises in the research, development, production and installation of polymer materials.
The company currently has eight regional production bases and sales subsidiaries across the country. The capital injection will allow it to increase production capacity, further develop sales network in target cities and meet its incremental working capital requirement, said Xin Chunhua, president and chief executive officer of Insuring, in a statement. It also gives Chan a seat on the company’s board.
The investment was made out of the firm’s debut fund, Spring Capital Asia Fund, which currently has two more energy-saving deals in China under exclusivity and a strong pipeline of deals, “particularly in cleantech and healthcare”, said Chan.
The fund, which has raised $103 million of its $200 million target, focuses on lower mid-market investments in Chinese growth companies in the healthcare and pharmaceuticals, cleantech, consumer, professional and business services sectors.
Spring Capital was set up in November 2007 and opened its second office in Shanghai in July 2008.