|
 |
| Tokai Rika Establishes a Joint Venture Company in China |
|
|
Aichi, Japan, November 10, 2003 - Tokai Rika Co., Ltd., today announced that it has set up a joint venture company in Jiangsu Province, China, to produce and market automotive key locks and switches. The new firm, named Suzhou Huachang Mechanical and Electrical Co., Ltd., was set up in the Suzhou Wuzhong Economic Development Zone in cooperation with a Chinese automotive supplier, Guizhou Guihang Automotive Components Co., Ltd., and two Korean companies, Shinchang Electrics Co., Ltd., and U-Chang Precision Co., Ltd. The joint venture company will fill a crucial role in meeting clients' diversified needs quickly in the growing automotive market in China.
Suzhou Huachang Mechanical and Electrical completed commercial registration in September with start-up capital of $3 million (approximately 330 million yen), 20% of which was funded by Tokai Rika, 35% by Guizhou Guihang Automotive Components, 30% by Shinchang Electrics, and 15% by U-Chang Precision. The new firm plans to start production immediately at temporary facilities in the Economic Development Zone in order to supply key locks and switches to clients in China by as early as December of this year. Mr. Lee Kwang Hwan, a director of Shinchang Electrics, has concurrently assumed the presidency of the new joint venture company.
Beginning in May 2004, Suzhou Huachang Mechanical and Electrical plans to build its own 4,600m2 manufacturing plant on a 33,000m2 site in the Economic Development Zone, which it plans to complete in February 2005. The new company expects to hire nearly 140 people in 2005 and has a sales target of 1 billion yen for that year. It projects its employment expanding to 170 and sales reaching 1.6 billion yen by 2008, at which time the four parent companies aim to have invested a total of 800 million yen.
REFERENCE
Shinchang Electrics Co., Ltd.
Established: January 1978
Location: Ansan-si, Gyungki-Do, Korea
Capital: 7.5 billion won (750 million yen)
Major products: automotive switches, key locks
Sales: 156.2 billion won (15.6 billion yen) in 2002
Employees: 800
Shinchang Electrics is an affiliated company of Tokai Rika. (Tokai Rika has a 29.2% equity stake in Shinchang Electrics)
U-Chang Precision Co., Ltd.
Established: February 1986
Location: Ansan-si, Gyungki-Do, Korea
Capital: 1.4 billion won (140 million yen)
Major products: key locks
Sales: 20.6 billion won (2 billion yen) in 2002
Employees: 160
U-Chang Precision is a wholly owned subsidiary of Shinchang Electrics.
Guizhou Guihang Automotive Components Co., Ltd.
Established: December 1999
Location: Guiyang, Guizhou Province, China
Capital: 220 million yuan (2.9 billion yen)
Major products: Automotive parts, motorcycle parts
Sales: 370 million yuan (4.9 billion yen) in 2002
Employees: 2,800
|
 |
TOKAI RIKA CO., LTD.
