Tianjin Motor Dies plans use surplus funds of 78.40 million yuan to set up an automobile metal-shaping joint venture in Wuhan, Hubei province, with Dongfeng (Wuhan) Industrial, reports yicai.com, citing a company filing.
The JV's registered capital is expected to amount to 160 million yuan. Tianjin Motor Dies will invest cash in the JV and own a 49 percent stake, while Dongfeng (Wuhan) Industrial will contribute land, plant and equipment worth 81.69 million yuan.
According to Tianjin Motor Dies, the JV will receive orders from Dongfeng (Wuhan) Industrial as soon as it is established, and will supply it with stamping parts.
The JV is planned to manufacture high-strength hot-molded stamping parts within 2 years of its establishment, which is expected to reap considerable profits.
