Tuesday 28th October 2003
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Its partners in the venture are the United States-based Garden State Tanning, one of the world's leading suppliers of automotive leather, and Shanghai Light Industry Holdings (LIH), a company owned by the Shanghai Government.
The objective of the agreement between the three parties is for Richina's subsidiary, Shanghai Richina Leather (SRL) to produce up to 50 million square feet of automotive leather a year within the next couple of years.
A key target for this leather will be China's emerging automotive industry, the fastest growing market in the world, while Garden State Tanning will also market the production internationally through its existing sales network.
"This memorandum represents a significant commercial opportunity for our China-based leather operation SRL, as it opens up to us an entirely new leather market of unlimited potential, and is a practical example of the business opportunities that exist for New Zealand companies once established in China" Yan said.
Over time, automotive leather will utilise up to 30% of SRL's total capacity, with the remaining production being allocated to existing shoe, upholstery and garment leather manufacture.
Richina Pacific also advises, that it has under active consideration new appointments to its board, and that it expects to be in a position to confirm these appointments within the next month.
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