INTERFORM Ceramics Technologies yesterday signed an agreement with Takasago Industry Co to set up a joint venture to manufacture kilns for firing tiles and ceramics in southern China.
Interform chairman Matthew Ngan Man-po said an agreement to finalise the equity participation in the project was expected to be completed by next month.
'The joint-venture project will involve the transfer of technological know-how to China,' said Sadazo Sakami, executive vice-president of Takasago.
The companies are said to be planning to establish the project at Foshan, Guangdong province, because of its proximity to raw materials.
Mr Sakami said the joint venture would reduce his company's costs for producing kilns by 30 per cent.
'We will save on transport costs as these kilns are meant for the growing China market,' he said.