The Board of Directors of YHI International Limited (the "Company") is pleased to announce that our wholly-owned subsidiary YHI Manufacturing (Singapore) Pte Ltd ("YHI Manufacturing") has entered into a Memorandum of Understanding ("MOU") with Pan Mar Corporation DBA Konig Motoring Accessories ("PMC"). |
According to the MOU, YHI Manufacturing and PMC intend to set up a joint venture company in the United States by the name of "Konig American Corporation" or such other name as the parties may agree. YHI Manufacturing will hold 51% and PMC (or its nominees) will hold 49% of the equity interest in the joint venture.
We believe that our joint venture with PMC will enhance our capabilities as an integrated Original Design Manufacturer ("ODM") solutions provider and together with our partners from PMC will provide our Group with a geographical presence in the United States.
The joint venture will provide PMC with enhanced opportunities to cooperate on a synergistic basis, by gaining immediate access to our strong manufacturing capabilities in China and Taiwan operations.
Founded in 1935, PMC has a long history as a trading company in the automotive aftermarket industry. It distributes high quality automotive wheels for the North American market under brands, such as KONIG, PRIVAT and MAXXIM.
None of the directors or substantial shareholders of the Company has any interest direct or indirect in the above transaction.
The Company will make further announcements in relation to the MOU as and when terms have been finalised.