Kong Wah in US$10m TV deal

KONG Wah Holdings has entered into a US$10 million joint venture with China to develop, manufacture and market colour television tubes.

Kong Wah has a 42.5 per cent stake in the project, Caihong Electronics Group of Shaanxi has another 42.5 per cent and a Zhuhai company owns the remainder.

Lam Chung-kiu, chairman of Kong Wah, said co-operating with Caihong Electronics would allow Kong Wah to secure a stable supply of high-quality television tubes and reinforce its sales in China.

Kong Wah makes television sets at plants in Shenzhen, Zhongshan, Tianjin and Harbin.

It is expected that a further US$20 million will be put in after the initial investment.

Caihong is a commercial subsidiary of the Ministry of Electronics Industry.