ALLIED Industries International (AII) is to focus on selected industries in China through direct acquisition and investment.
New chief executive Chung Tze-hien said AII's move to take on operations, along with its subsidiaries, would rid it of the image of a single-function holding company.
''This is part of the company's on-going evolution process, from disposals of subsidiaries, changing of business focus and strategy, to the latest building up of professional teams,'' said Mr Chung.
All these exercises came as the Allied Group, which controlled 58 per cent of AII, realised the need for its subsidiary to become an effective operating company with better returns, he said.
The company saw a drop in net profit to just $9 million in the first six months of 1992 from $28.8 million.
Mr Chung said the formation of its own operations would offer a benefit to the company.
Chemical and building materials industries have been chosen as major businesses of AII in China at the moment. But this portfolio would be increased as opportunities arose, he said.