Luoyang Glass joint venture

Hong Kong-listed Luoyang Glass Co Ltd has invested HKD 40 million to set up a joint venture company in China to produce and sell float glass and related raw materials.
The float glass maker had signe…

Hong Kong-listed Luoyang Glass Co Ltd has invested HKD 40 million to set up a joint venture company in China to produce and sell float glass and related raw materials. The float glass maker had signed a contract with its parent China Luoyang Float Glass (CLFG) and two independent parties to set up Luoyang Glass Group Yangshao Glass Co. Ltd. in China“s Henan province, the company said in a statement. The joint venture has a registered share capital of HKD 74.08 million, of which Luoyang Glass contributed 54% and its parent 10%. Henan Mianchi Float Glass Plant contributed the remaining 36% of the capital. The venture is supported by the People“s Government of Mianchi of Sanmenxia City, which did not make any capital contribution. Luoyang Glass, which is 57.14% held by CLFG, said the joint venture would allow the company to strengthen its production capacity and increase its market share in Henan. Its capital contribution was funded from internal resources, the statement added. Luoyang Glass also said it had contributed HKD 71 million to the registered capital of an associate, China Luoyang Float Glass Group Financial Co. (CLFC). The contribution was funded by bank borrowings, it added. The board of CLFC decided to increase its registered capital to HKD 300 million from HKD 100 million to comply with the Chinese government“s order requiring finance companies in China to have a minimum registered capital of HKD 300 million. Luoyang Glass said its interest in CLFC will be diluted to 37% from 40% after its contribution and the capital increase of CLFC.