Innovative links with car maker
Innovative International (Holdings) has teamed with Tianjin Automobile Factory in a US$15 million venture to produce specialist car parts.
The north China venture, in which Innovative holds an 80 per cent stake, will be the car-maker's exclusive supplier of parts using hi-tech powder metallurgy.
Innovative yesterday said it would fund the development by placing shares.
Major shareholder Stephen Chang Lien-hing has placed 27 million shares to professional investors at HK$2.575 per share.
Through Fenman Holdings, he and his wife also have exercised their rights to 27 million warrants, which have been converted to shares at HK$2.70 each.
The Tianjin factory, which recently signed a deal with Toyota to make Corollas, produces Daihatsu and Charade cars and mini-vans.
Last year's production was 100,000 and this was expected to be increased to 150,000 this year.
The joint-venture investment would occur over three years and was expected to become the largest powder metallurgy plant in northern China.
The company expected to make 1,200 tonnes of components in the first year of operation, with capacity rising to 2,500 tonnes.
