Hoe Leong: subsidiary starts 50/50 JV in the PRC with Italian partner, Valuepart Europe SPA, with US$6m equity, to expand heavy eqpt parts business. JV will manufacture undercarriage parts on an OEM basis particularly for earth moving machine manufacturers, subject to approval of business license from the State Admin for Industry and Commerce. VE SPA is one of the major distributors of undercarriage components in Europe, US and Canada, and would be a key customer of the JV.
Hoe Leong will fund the investment with internal resources. SIAS has an Overweight rating with $0.54 target.
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