Dunedin-based listed Scott Technology has announced a 50-50 joint venture with an Australian-listed mining sector specialist in mineral analysis processing.
Acquisitions or joint ventures during recent years of many specialist niche companies have underpinned Scott's performance, while its automated appliance manufacturing line division has been weathering downturns in Europe and the United States.
A Scott subsidiary and Australian company, XRF Scientific Ltd of Perth, is combining to trade under XRock Automation Ltd, with XRF being a provider of fusion equipment used in the X-ray florescence process of mineral analysis.
There was no buy-in by either company and each was contributing equally to the $A200,000 ($NZ255,000) to fund the joint venture, Scott chief executive Chris Hopkins said when contacted yesterday.
Together, the joint venture would build on the automation process of sample analysis by combining complementary technologies, he said.
During the past three years, Scott had bought Rocklabs for $10 million in cash and shares and Malcolm Smith Reference Materials for $1.5 million; and paid $4.4 million for a controlling stake in HTS-110 Ltd; almost $1 million for its 75% stake in Qingdao Teknatool Machinery Manufacturing Ltd in China; and $400,000 as part of a centrifugal machine joint venture.
