Pilkington Italia and Shanghai Yaohua Pilkington to set up JV

Pilkington Italia SpA and Shanghai Yaohua Pilkington Glass Co. Ltd. are to set up a 50-50 joint venture with, Shanghai Yaohua said. According to a statement it filed with the Shanghai Stock Exchange, …

Pilkington Italia SpA and Shanghai Yaohua Pilkington Glass Co. Ltd. are to set up a 50-50 joint venture with, Shanghai Yaohua said. According to a statement it filed with the Shanghai Stock Exchange, Shanghai Yaohua will sell 25% of its plant in Changshu city for USD 2.46 million to Pilkington Italia. Glasslink, its wholly-owned unit incorporated in Hong Kong, will also sell a 25% stake in the plant for USD 1.81 million to Pilkington Italia, a subsidiary of the UK“s Pilkington Plc. The two firms will then each hold 50% of the Changshu glassmaking plant, which will be the new joint venture. Although the deal has been approved by the Shanghai Yaohua board of directors, it is still subject to government approval, the Chinese firm said. The new venture will have a registered capital of USD 48.33 million, said Shanghai Yaohua, and will borrow the rest of the total planned investment of USD 96.68 million. Pilkington International Holdings BV, another unit of Pilkington Plc, had an 18.98% stake in Shanghai Yaohua at the end of 2004. (USD 1 = CNY 8.30)