3A Composites has announced it is set to purchase PNG Balsa in Papua New Guinea.
PNG Balsa specialises in the planting, harvesting and processing of balsa wood used primarily as a core support material within wind power turbine blades and for the marine market.
With this acquisition, 3A Composites is further strengthening its position in the core material business and is securing the future supply of balsa wood for its customers. Along with the companies investment in a state-of-the-art balsa wood processing plant in Ecuador, the acquisition of PNG Balsa reinforces the strategy of focusing on innovative, high-quality balsa and PET products in the lightweight construction field.
The transaction is scheduled to be completed in the first quarter of 2015. In 2013, PNG Balsa generated revenues of around CHF 13 million. The purchase price for the company is in the low double-digit million USD range.