Templeton Emerging Markets Group today lauded the establishment of a strategic alliance framework agreement between SPX Corporation's (NYSE: SPW) SPX Service Solutions business unit and Launch Tech Company Ltd. ("the Company") of China, a global player in the automotive aftermarket. SPX has also acquired a minority equity position in Launch Tech. Templeton Strategic Emerging Markets Fund II, LDC, holds 16.67% of the H-shares (representing 7.55% total shares outstanding) of Launch Tech Company Ltd. (8196.HK).
Dr. Mark Mobius, executive chairman of Templeton Emerging Markets Group, said: "We would like to congratulate Launch Tech on its recent success entering into a strategic alliance with SPX. This strategic cooperation is another milestone for the Company, further confirming its competitiveness in the international and the auto-aftermarket, which should be beneficial to the Company in the long-run. The large size of the Chinese automobile market and increasing penetration of automobiles in China should also provide a boost for leading Chinese auto-aftermarket players like Launch Tech. We expect the Company to be in a favourable position to achieve good business growth in the years ahead."
The Templeton Emerging Markets team believes that this alliance is a very positive development for investors such as the Templeton Strategic Emerging Markets Fund II, LDC in Launch Tech. Both Launch Tech and SPX Service Solutions are leaders in the field of automotive aftermarket equipment and the alliance will strengthen both companies. The companies will be able to co-market each other's products and leverage each of their respective global distribution networks.
China's auto sales increased nearly 50 percent in the first half of 2010 over the same period in 2009, with a total of 9.02 million units sold, according to data from the China Association of Automobile Manufacturers. A total of 13.64 million units were sold in the whole of 2009. With the expected rapidly increasing new car sales in China driving demand for the maturation of the vehicle service industry in China, SPX Service Solutions is taking steps to strategically position its business in order to best serve this market over the long-term.
Founded in 1992, Launch Tech Company Ltd. manufactures and markets a wide range of automotive aftermarket equipment and service solutions for repair centers and currently serves 400 distributors in 60 countries. In 2009, the company reported US$68 million in revenues, with approximately 50 percent of sales generated in China, where it is a leading provider of aftermarket diagnostic tools. Launch Tech Company Ltd, in addition to its positions in Europe and North America, also has a leading presence in many other key emerging regions of the world.
SPX Service Solutions, headquartered in Warren, Michigan, and with offices around the world, designs, manufactures and markets a fully integrated family of global brands providing special service tools, advanced diagnostic and shop equipment and technical information for vehicle servicing and maintenance. The firm is part of SPX Corporation (NYSE: SPW), a Fortune 500 multi-industry manufacturing leader that provides its customers with highly-specialized, engineered solutions to solve critical business issues.
About Templeton Strategic Emerging Markets Fund II, LDC ("TSEMF II") and Templeton Emerging Markets Group
TSEMF II, a Limited Duration Company incorporated in the Cayman Islands, is available only to institutional and qualified investors.
TSEMF II is not authorized by the Securities and Futures Commission in Hong Kong and is not available to investors in Hong Kong other than to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap 571) and/or any rules made there under.
TSEMF II is managed by Templeton Asset Management Ltd ("TAML"), the licensed investment advisor for the Templeton Emerging Markets Group, led by Dr. Mark Mobius. Dr. Mobius, a pioneer in emerging markets investing, has over 30 years of experience managing assets for retail, institutional and professional investors across the globe. One of the largest of its kind, the Templeton Emerging Markets Group manages over USD30 billion in emerging markets equities and consists of 45 portfolio managers and analysts, speaking 24 different languages and dialects and located in 16 offices around the world, as 30 June 2010.
Franklin Resources, Inc. (NYSE: BEN), the ultimate parent company of TAML, is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, California based company has more than 60 years of investment experience and over USD602 billion in assets under management as of 31 July 2010. For more information, please visit franklintempleton.com.