YIP'S Hang Cheung (Holdings), a maker and distributor of solvents and paints, is planning a joint venture with Chinese and overseas partners to manufacture new products in China.
Chairman and managing director Tony Ip Chi-shing said the joint venture, which called for an investment of about US$4 million, would be finalised in the first half of the year.
The group had already secured a mainland partner, but was still selecting a suitable overseas partner from among several US, French and German companies, he said.
The venture would employ mainly overseas technology and utilise the cheap land and facilities in China, enabling Yip's Hang Cheung to branch out.
Mr Ip declined to give details, but said the new products would complement the group's existing businesses.
He also said Yip's Hang Cheung was negotiating with mainland partners to set up manufacturing joint ventures in China.
These manufacturing ventures would act as sub-contractors, purchasing raw materials from Yip's Hang Cheung, then selling the products back to Yip's Hang Cheung for further processing.