Bill Swanson, Cartridge World’s Global CFO and North America CEO; Richard Yu, Founder and Chairman of SGT; and Rod Young, Cartridge World’s Global Chairman and CEO. Picture courtesy of Recycling Times
The franchise and its new major shareholder have commented on their recent agreement.
Cartridge World’s Global Chairman and CEO Rod Young wrote to franchisees last month stating that the current shareholders would be selling their investment in the cartridge franchise, and The Recycler reported earlier this month that an announcement was to be made confirming a Chinese investor would acquire the Cartridge World global operation. Suzhou Goldengreen Technologies (SGT) was then revealed as the company in question.
Cartridge World noted that SGT is “one of the world’s largest manufacturers and suppliers of printer cartridge components to aftermarket cartridge manufacturers and printer manufacturers”. The company itself states that it is “supported by government science and technology funds and hi-tech venture capital”. SGT also claims that it has “self-designed and set up several high-volume mass production lines in recent years”, and has “become the largest local OPC manufacturer in mainland China”.
The franchise has now reported on how the deal with SGT has produced the “first integrated aftermarket printing services company”, with SGT becoming a “shareholder of the Cartridge World group”.
The new capital structure arising from the agreement will allow for “re-investment into technology, franchise system growth and product innovation”, and Cartridge World added that SGT’s “manufacturing expertise, automation and product innovation” will support its “drive to supply high-quality and cost-effective products to its franchisees and customers on a global level”. This will include “supporting an increasing share of business customers that utilise Cartridge World’s new suite of office printing solutions”.
Young commented: “SGT has been recognised as being at the forefront of robotic manufacturing technology in the imaging industry, as well as supplying high quality OPC drums to original equipment manufacturers (OEM) and aftermarket suppliers. SGT’s Founder and Chairman, Dr. Richard Yu, has built the company into the largest manufacturer in its segment in China and one of the world’s major players in the printer cartridge industry.”
He added that the “recapitalisation” of the franchise “will allow Cartridge World to be on the cutting edge of its industry”, with SGT having “recently released industry-leading patented technology” and having “plans to invest in upstream and downstream manufacturing facilities”. He also noted that “the combination of SGT’s substantial R&D expertise and manufacturing technology in the imaging industry with Cartridge World’s network of more than 1,000 locations positions us as the world’s only fully integrated aftermarket print services supplier”.
Yu commented: “This investment is a strategic long-term decision. We believe in the Cartridge World organisation and global brand, and we look forward to working together to inspire all our associates to grow the business moving forward. We are excited about our partnership and its true potential. This investment signifies just how dedicated SGT is to the aftermarket and its long term viability.”