UMW IN PROPOSED LUBRICANTS JOINT VENTURE IN CHINA
Shah Alam, 25 July 2008 – UMW Corporation Sdn Bhd, a wholly-owned subsidiary of UMW Holdings Berhad, today signed a Letter of Intent (“LOI”) with Hong Kong-based Dah Chong Hong (Motor Service Centre) Limited (“DCHMSC”) for the proposed setting up of a joint venture company to manufacture and process lubricants in China.
The proposed joint venture company is to be established in Xinhui, Guangdong Province China with a planned output capacity of 50 million litres, with the potential to expand to 100 million litres of lubricants to tap into the high growth China market.
DCHMSC is a wholly-owned subsidiary of Dah Chong Hong Holdings Ltd, a company listed on the Hong Kong Stock Exchange. The company is principally involved in motor and motor-related businesses, food and consumer products, as well as logistics services in Hong Kong, Macau, China, Japan, Singapore and Canada.
“UMW is excited about this venture as it is in line with our positioning of UMW as a truly diversified company to enhance our strengths in the global arena and further tap into international opportunities” said Dato’ Abdul Halim bin Harun, Group Managing Director and Chief Executive Officer UMW Holdings Berhad.
“Both UMW and DCHMSC can leverage on our respective areas of competency, strength and competitiveness to gain long term advantage in the growing lubricant business in China. With regard to the smart-partnership with DCHMSC, we are confident that it can be further developed to explore other business opportunities that China can offer,” he added.
UMW has vast expertise and experience in the lubricants business through 18 years of joint venture manufacturing and marketing major lubricant brands in Malaysia.
The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in four core businesses - Automotive, Equipment, Manufacturing and Engineering, and Oil and Gas.
UMW recently unveiled its new brand which is aimed at amplifying its leading position at home and organising itself for greater global expansion. It will now focus on building on the strengths of its core businesses as well as enhancing those strengths in the global arena to further tap international opportunities.
In adopting its new rallying call - Beyond Boundaries – UMW is set to play a leading role in shaping the future of its industries globally. The Company will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of all its stakeholders.
