Chinese Expand Operations Outside Borders
September 30, 2005
Filed under Uncategorized
Two more Chinese companies are moving out of their home country’s borders to expand their motorcycle businesses.
In the first deal, Thailand’s KMB Inter Business Co. has agreed to link with Jialing Motors, the biggest motorcycle producer in China, to set up Sky Wing Motor (Thailand) with initial registered capital of $2.44 million.
The 55:45 joint venture, with KMB Inter Business holding the majority stake, plans to build a factory costing at least one billion baht in Bank Pakon, Chon Buri.
The plant, which will mostly manufacture 125cc units, is scheduled to be finished next year, with annual production capacity of 100,000 motorcycles. Capacity is expected to be increased to 500,000 units within five years, with 20% of the output to be exported to the ASEAN market.
The second deal involves a joint venture between United Union Parts Co. of Thailand and Jiangmen Zhongyu Motor of China. The 65:35 joint venture, to be called Yasuda, will be majority owned by United Union.
Yasuda’s motorcycle assembly plant will be built in Bang Pakong with an initial investment of $14.61 million. The facility is scheduled to be operational in November, and is expected to assemble about 50,000 units per year. Exports – mostly to India, Bangladesh and Pakistan – would account for 40% of the total production.