Goodway to set up tyre retread plant in China

Kuala Lumpur - Goodway Integrated Industries Berhad (GIIB) has said it intends to set up a joint venture business to manufacture and sell rubber tyres and recycled rubber tyres and to produce precured tread liner in the People's Republic of China. It appears that the factory is aimed at retreading, rather than new tyres, but no-one from Goodway was available for comment.

In a statement issued to the Kuala Lumpur stock exchange, Goodway said the joint venture would, "allow the GIIB Group to consolidate and expand its current operations in the PRC at a relatively low investment cost." The statement continued, "JVA is in line with the GIIB Group's current expansion plan into the PRC to capture the substantial tyre retread market potential there."

GIIB said its investment in the project will be around $1 million (€731 000), while the total share capital will be around HK$20 million ( €1.9 million).

Ultimately Goodway's Hong Kong subsidiary will hold 60 percent of the shares while the Chinese partners will hold 40 percent.

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Statement to Stock Exchange from Goodway (KLSE. Reference No CM-070905-61471)