Seb China unit Supor plans $135 mln Vietnam plant
SHANGHAI, Dec 24 (Reuters) - China's Zhejiang Supor Cookware Co Ltd 002032.SZ, controlled by French household appliances maker Seb (SEBF.PA), said on Monday it would spend 1 billion yuan ($135 million) to build its first overseas factory in Vietnam next year.
The planned facilities will help Supor to avoid export duties and boost sales in the 10 countries of the Association of South East Asian Nations, a market that equals half of China's population of 1.3 billion, investor relations official Liao Lihua told Reuters.
Board Secretary Ye Jide said on Monday that Supor's profit would jump as much as 80 percent this year on sales that would rise 40 percent, in line with the company's forecast in its third-quarter report.
"Sales may grow faster in the future, as Seb will move more production to China," Ye said.
Seb last week boosted its stake in Supor to 52.74 percent from 30 percent, after completing a partial tender offer for the company, which is based in eastern China.
Seb's investment in Supor, worth a total of 327 million euros ($470.4 million), will give it access to a sales network across China, the world's fastest-growing consumer market, as well as a low-cost manufacturing base.
Seb in August 2006 announced plans to take over Supor and in August won Chinese government approval to buy an initial 30 percent stake, although Chinese rivals had been urging Beijing to block the deal.
Exports currently account for one-third of Supor's total sales, but outside of Southeast Asia its products sold abroad carry foreign brands in original equipment manufacturing arrangements. (US$1=7.3608 Yuan, 0.6952 Euro) (Reporting by Samuel Shen; Editing by Edmund Klamann)
