Tricorn Group PLC Announces Joint Venture In China

Tricorn Group PLC announced that it has agreed terms for the formation of a joint venture in China which will manufacture diameter tubular assemblies. The new company called Minguang-Tricorn Tubular Products Nanjing Ltd will be fully operational following the approval of its business licence which is expected around the middle of this month. The joint venture formed between Tricorn's wholly owned subsidiary in China, Maxpower Automotive Components Manufacturing (Wuxi) Ltd (Maxpower Wuxi), and Nanjing Minguang Oil Pipe Company Ltd (Minguang) will be based in Nanjing. The facility there offers scope for expansion and will initially have around 40 employees. Under the terms of the agreement, Tricorn will own 51% of the joint venture. Maxpower Wuxi will pay consideration of CNY3,920,700 (GBP0.39 million) into the joint venture, funded from short term borrowings, whilst Minguang's consideration will be satisfied through the provision of plant and equipment and operational capability. The joint venture will supply exclusively through Tricorn's businesses in China and overseas.