Cadmus buys rest of production manufacturing

Cadmus Technology said today it had bought out its joint venture partner in Production Manufacturing for $25,000 plus the issue of 3,017,778 Cadmus ordinary shares.

Cadmus shares last traded at 35c.

Production Manufacturing Limited was formed in 2003 and manufactures solely for Cadmus.

Cadmus managing director Ian Bailey said the purchase allowed it total control over its manufacturing requirements as well as improving the management of production costs and scheduling.

"This acquisition provides the platform for Cadmus to expand its production to meet an expected increase in demand over the next 12-36 months as the requirement for EMV (Europay, Mastercard and Visa) compliant terminals become mandatory."

The deal will also enable Cadmus to obtain further potential cost savings in using larger international contract manufacturers when required, Mr Bailey said.

He said Cadmus was working on "a number of international opportunities and appropriate acquisitions. Further announcements will be made is these are finalised."

- NZPA