ARNHOLD Holdings, an engineering and building materials supplier, will use $20 million of the funds raised from its share issue to invest in manufacturing plants for building products in China. Chairman Michael Green said the investment would upgrade production facilities in order to benefit from China's preferential treatment of import substitution. He said the company would spend a further $5 million to set up more distribution facilities, including warehousing, for building products in China. He added that Arnhold was developing the business of retail and wholesale building products sales in China through a co-operative of joint-venture retail operations. In June, Arnhold signed a co-operation agreement with Cheung Shing to operate a retail outlet in Shenzhen to sell plumbing fixtures. The joint-venture plans to open five to 10 outlets in the next 12 months. On September 30, the company had outstanding orders amounting to $265 million. Arnhold is offering 49.38 million new shares at $1.25 each, with a price-earnings multiple of 6.2 on a weighted average, and 7.9 on a fully diluted basis. It expects a profit of no less than $30 million for the year to December 31. The share offer will close next Wednesday. Trading in the shares is scheduled to start on January 10.