DongPeng Europe is formed

Jun 07, 2007

07/06/07 - DongPeng Europe, a new company set up as a joint venture by the Chinese tile manufacturer Guangdong DongPeng Ceramics Company and the Italian construction sector group Mazzi, was officially presented in May at a press conference in Milan.

The new company, controlled 60% by the Italian group, intends to establish itself rapidly in the European market. It will be supported by a sales network made up of highly experienced agents and a modern outsourced warehouse in Sassuolo that is capable of assuring continuous product flows.

The ambitious business plan launched by the company’s management sets targets of approximately 5 million euro turnover in the first year of activity and a doubling of turnover yearly for the following two years. Cash flow is expected to show a positive trend from the second year onwards to reach about 2.7 million euro at the end of the third year. Profitability from turnover (EBITDA) is expected to be in the region of 17% as of the third year.

Guangdong DongPeng Ceramics Company is one of the largest Chinese companies operating in the ceramic sector and has a production capacity of approximately 50 million sq.m.

Included in the Chinese government’s list of 500 high added value companies, over the years the company has gained important international certifications including ISO 9001 and ISO 4000.

The Verona-based Mazzi Group is one of the leading Italian players in the field of large-scale public and private works. One of its most recent projects was the Olympic stadium for the Turin 2006 Winter Games.
The Group recently expanded its field of operations into allied sectors such as real estate and products for building and furnishing. The creation of DongPeng Europe comes as part of these expansion activities.