Fong’s Acquires Monforts

Fong’s Industries Co. Ltd., Hong Kong, a subsidiary of China Hi-Tech Group Corp., has acquired
Germany-based dyeing and finishing machinery maker A. Monforts Textilmaschinen GmbH & Co. KG.,
from Monforts’ parent company, L. Possehl Co. & mbH, Germany. The acquisition also includes
Monforts subsidiary Montex-Maschinenfabrik Ges.m.b.H and its production site in Austria; and
Monforts’ 50-percent stake in Monforts Fong’s Textile Machinery Co. Ltd. (Monfongs) – a joint
venture established in 1998 by Monforts and Fong’s. Possehl will hold a 9.9-percent share of

“Monforts is the leader in innovation in textile finishing machinery,” said Alex Wan, CEO,
Fong’s. “It will considerably strengthen our international competitiveness, which has set course
for worldwide leadership and excellence in the textile machinery business.”

“Today’s announcement intensifies our long-standing cooperation with Fong’s and opens up new
opportunities for Monforts,” said Roland Hampel, managing director, Monforts. “Innovation stands at
the core of our daily work and we look forward to strategically developing new business areas for
our customers with our trusted and successful partners in China.”

Wan and Hampel emphasized technical textiles as a prospective business area on which the
companies will focus. The companies also plan to establish what they describe as the “textile
machine factory of the future” in Zhongshan, China.

July/August 2012