NEWPOWER Group, a Hong Kong trading and manufacturing company, is planning to invest HK$500 million in the next two years to further its expansion in the China market.
'The money will be used in expanding our core businesses and in establishing manufacturing joint ventures where the production technology is compatible with the existing industrial machinery traded by the group,' executive chairman David Lie Tai-chong said.
The group has been operating machinery trading and investment consultancy businesses in China for the past 12 years.
The company is in the process of establishing two joint ventures with mainland parties and the letters of intent have been signed.
One venture, with total investment of US$11 million, is with the Foshan Group to produce non-woven fabric to make disposable medical garments.
The other, costing US$50 million, is with the Tianjin Plastics Corp for a packaging film operation. The film is used to package food and cigarettes. The cost to Newpower will be 65 per cent of each investment.
Mr Lie said there was increasing demand for non-woven fabric, especially in the medical field. Initial production capacity will be 3,000 tonnes a year.
