Richina Pacific Ltd., a New Zealand-based diversified investment company, has signed an agreement to provide automotive leather for the Chinese and world markets, according to Dow Jones Newswires.
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The report said a memorandum of understanding was signed last weekend with business partners – US-based Garden State Tanning Inc. and Shanghai state government-owned Shanghai Light Industry Holdings – and coincided with a visit to New Zealand by Chinese president Hu Jintao.
Dow Jones said Garden State Tanning customers include General Motors, Ford and Honda while Shanghai Light Industry is one the largest state-owned companies in Shanghai.
Dow Jones said that, under the agreement, Richina’s Shanghai-based leather unit will reach an output of up to 50 million square feet of automotive leather within two years and the leather will be sold mainly in the Chinese market, with Garden State Tanning to oversee international marketing.
New Shanghai production facilities to be completed in mid 2004 will triple annual production capacity to about 200 million square feet of leather, the report added.
