Daiwa ends deals
Daiwa Associate Holdings, the electronic product and component maker, has terminated distributorship deals with SGS-Thomson and Bourns.
Company secretary Man Wai-chuen did not give any reason for the decision.
The two companies accounted for about 15 per cent of Daiwa's turnover for the year to March 31.
'Daiwa is not trying to procure distributorships from other internationally renowned electronics manufacturers,' Mr Man said.
He said most of the remaining inventory of Bourns and SGS-Thomson products could be disposed of without making 'substantial provision' for writing down stock value.
'There will be no material adverse effects on the operations and working capital of the group,' he said.
The agreement with SGS-Thomson will end on January 15 next year and that with Bourns on November 16.