Saturday, December 12, 2009

Tan Chong Motor set to invest US$15m in Vietnam

KUALA LUMPUR: TAN CHONG MOTOR HOLDINGS BHD [] has received Vietnam's go-ahead to set up a subsidiary that will manufacture and assemble buses, trucks and cars. The company's total investment is expected to be US$15 million (RM50.9 million).

The company said earlier today, its unit TCIE (Labuan) Pty Ltd had received a certificate of investment from Danang Industrial and Export Processing Zones Authority to set up a wholly owned subsidiary, TCIE Vietnam Pte Ltd.

TCIE Vietnam will manufacture and assemble buses, trucks and passenger cars. It will also undertake to sell and provide after-sales services for the vehicles.

"The total investment capital for the investment project is US$15 million, of which US$6 million will be capital contribution [charter capital] from TCIE (Labuan) Pty Ltd. The charter capital of US$6 million shall be contributed within 24 months from the date of the issuance of the investment certificate," it said.

TCIE Vietnam has committed to purchase/lease 129,500 sq m of land in the expanded Hoa Khanh Industrial Zone, Danang City for US$3.04 million to carry out the project.

"The establishment of TCIE Vietnam is part of a long-term plan of the group to gain a regional footprint in markets with low auto penetration, abundant labour and low costs. TCIE Vietnam is expected to commence business operation in the third quarter of 2011," it said.

Click "refresh" for manual update message

CRUDE OIL LIVE 1 MIN Chart

Commodity Futures Charts