Richina plan overseas move

Richina Pacific's plans to tap into the increasing potential of the Chinese automotive market are well underway. The company's Shanghai tannery is already one of the largest in the world and, when upgrades are completed next year, production is expected to reach more than 61 million metres per year. Of this total, Richina hope that around 30% will be destined for the Chinese automotive market, a market which is expected to exceed US production by 2015. 'Plans to move the company abroad are progressing well&bsquo;' said Richina chairman Richard Yan. 'The move would take place in two steps&bsquo;' he added. 'Registration of the company would be transferred to an international base such as Bermuda by the end of this year, and the listing on the Singapore exchange is likely to be completed in early 2004. The move is logical for Richina as more than half of our production is now international. 'We are a US-dollar business and by staying in New Zealand, it means we are reporting in New Zealand dollars and trading in New Zealand dollars which doesn't make a lot of sense given the volatility of the exchange rate between New Zealand and US dollars.' Yan added that Richina would be transformed from an investment company into one of the world's largest tanners. The company have also entered into an agreement with GST AutoLeather Inc and Shanghai Light Industry Holdings to build a new facility in Shanghai. Source: The New Zealand Herald