THE relationship between the Kader parent company in Hongkong and its Thai subsidiaries is complex. Kader Industrial (HK), a wholly-owned subsidiary of Hongkong-listed toy maker Kader Holdings, set up a joint venture, KCP Toys, in the territory with a Thai partner in 1988. Kader Industrial (HK) has a 50 per cent stake in KCP Toys, with the Thai partner, Honbo Investment, which is associated with the Charoen Pokphand group, owning the other 50 per cent. The managing director of KCP Toys is Mr Julin Unaphum, a member of the family which controls the Charoen Pokphand group. Mr Unaphum works in Hongkong. KCP Toys has four subsidiaries: KCP Marketing; Kader Industrial (Thailand); KCP Packaging; and Thai Chiu Fu. KCP Marketing, which is based in Hongkong, has Taiwanese shareholders, identified in the Bangkok Post as Chen Cheng-hsiung, Hsu Ying-po and Chang Chu-yeun, who hold a 20 per cent stake. The company, which has capital of $10,000, is responsible for sales and marketing. The Taiwanese partners also hold 20 per cent of Kader Industrial (Thailand) and KCP Packaging, with KCP Toys owning the remainder. Kader Industrial (Thailand) has capital of 200 million baht ($61.6 million) and an annual production capacity valued at US$22 million ($172 million). KCP Packaging, which has capital of 25 million baht, has a limited amount of production capacity. Thai Chiu Fu is listed on the Securities Exchange of Thailand. Twenty-five per cent of its shares are traded on the exchange. KCP Toys has a 60 per cent stake with the Taiwanese partners owning the remainder. It has capital of 100 million baht with an annual capacity valued at US$25 million. All three Thai factories are located at the same site in Bangkok. It has been reported that the three plants are managed by the same people. Employees said the four subsidiaries appeared to have a common management and openly used the Charoen Pokphand name in staff exchanges. The buildings were connected by walkways, used the same distribution facilities and made similar products. The factories manufactured toys, bags, plastic souvenirs and footwear, exporting about 80 per cent of output to the US, with the remainder going to Europe. Clients in the US included Commonwealth Toy and Novelty Co Inc of New York. In Europe, Kader Industrial (Thailand) produces toys for Tyco Toys of the UK, and an Italian subsidiary in Milan.