KONG Wah Holdings has launched a 160 million yuan (about HK$214 million) joint-venture investment vehicle in Shenzhen as an aggressive diversification drive into property, container terminals, warehousing and reclamation works.
Shenzhen Harbour City Industrial Development Co is 70 per cent owned by Kong Wah and 30 per cent owned by Nanhai Oil Shenzhen Development and Service Corp.
Kong Wah chairman Lam Chung-kiu said Shenzhen Harbour City was a strategic investment vehicle to pursue various projects through direct investment or joint ventures.
He said the joint venture was negotiating with Nanhai Oil to undertake the development of three 35,000-tonne container terminals and a warehouse complex in Shenzhen.
The container terminals are expected to take six years to complete, and will involve a total investment of about 600 million yuan.
Mr Lam said the development of container terminals formed part of Kong Wah's diversifying from electronics manufacturing to various development opportunities.
He said it was negotiating to bring in Hongkong investors as partners in the development of container terminals, in which Kong Wah has little experience.