Tannery Expanding To Be One Of World’s Largest
December 10, 2003
Richina Tannery Expanding To Be One Of World’s Largest While Company Relocates Incorporation To Bermuda
Statement released by Richina Pacific Limited based on the address made by Acting Chairman, Richard Yan, at today’s Special Meeting held in Auckland.
Richina Pacific’s leather operation in Shanghai will have one of the largest capacities of any tanning facility in the world when expansion and equipment upgrades currently underway are completed in the third quarter of next year.
Shareholders at today’s Special Meeting were told that when fully operational, the leather manufacturing operation would be capable of producing more than 180 million sq ft of leather a year compared to its current capacity of 65 million sq ft.
At the meeting shareholders approved Richina relocating its place of incorporation to Bermuda.
The company is presently constructing a fourth tannery building and production line on its Shanghai site, and it will equip the facility with newly developed tanning drums capable of processing 20,000 kilograms per load, four times the processing capacity of existing tanning drums.
The new building is scheduled for completion in May next year, and to be operational by August.
Full operational capability will be achieved in early 2005.
A key market for the additional output will be the automotive segment of the leather industry, its fastest growing and most profitable. The company manufactures shoe, upholstery and garment leather in its existing three tanneries.
Richina announced last month it is in discussion with GST AutoLeather, one of the world’s largest auto leather suppliers, about working together to build a China based automotive leather business supplying the global market.
Shareholders were told that Richina Pacific owns one of only 200 China Holding Companies, which provides it with unique advantages in entering into strategic partnerships with other foreign companies such as GST AutoLeather. That subsidiary, Richina Pacific [China] Investments Limited, is also one of only 50 foreign companies granted Regional Headquarter status in China, which allows for even more flexibility and gives us opportunities not available to companies without this favoured status.
Richina confirmed its 2003 profit is likely to exceed NZ$ 4 million.
Shareholders were advised that future initiatives included relocating the company’s headquarters to Singapore, listing on the Singapore stock exchange, becoming the first New Zealand company to report to the new international accounting standards, and stating its financial results in US dollars.
The company will retain a New Zealand listing and continue to hold its annual meetings in New Zealand.