China To Expand its Largest Vanmaker

SHANGHAI, Dec 24, 2002; Reuters reported that regulators have approved a plan to boost the capital of China's largest vanmaker, a venture between Brilliance China Automotive Holdings Ltd and Shenyang Jinbei Automotive Co Ltd, Shenyang Jinbei said on Tuesday.

The two shareholders agreed last year to increase the paid-in capital of Brilliance Jinbei Car Co Ltd to $444.16 million from $171.16 million.

Shenyang Jinbei said in a statement it would invest $133.77 million, or 49 percent of the new capital, by giving the venture its technology for producing sedans and multi-purpose vehicles and a technical training centre.

Hong Kong- and New York-listed Brilliance China would pay the remaining 51 percent, Shenyang Jinbei said without elaborating.

"The plan has been approved by the Ministry of Foreign Trade and Economic Cooperation," it said in the statement published in official state newspapers.

"The move will help Brilliance Jinbei Car introduce new products and expand production capacity," it said, adding the plan would be submitted to a shareholders' meeting on January 24 for approval.

Brilliance Jinbei Car is 51-percent-owned by Brilliance China and 49-percent-owned by Shenyang Jinbei, and is the main breadwinner for both companies.

The venture was formerly called Shenyang Jinbei Passenger Vehicle Manufacturing Co. It started making luxury vans based on Toyota's designs in November and planned to begin production of BMW sedans in the middle of next year.

Shenyang Jinbei Automotive, which also maintains a truck and SUV manufacturing plant with General Motors Corp.