HUTCHISON Whampoa has agreed to inject 1 billion yuan (US$143 million) into its venture with Shanghai WhiteCat Group as it tries to revive the well-known Chinese brand.
Hutchison, controlled by Hong Kong tycoon Li Ka-shing, has gained approval from the Ministry of Finance for the fund injection into Shanghai Hutchison WhiteCat, the joint venture said in a release yesterday.
Hutchison will also invest more than 3 billion yuan in coming years under a long-term strategy to promote the WhiteCat brand detergent made by the joint venture, according to the release.
''The short-term goal is to enhance market share and competitiveness,'' said Simon To, a managing director at Hutchison Whampoa (China). ''The ultimate target is to make Hutchison WhiteCat a world-class enterprise to compete with international giants.''
Shanghai WhiteCat Group, renowned for its namesake detergents, is striving to fend off competition from overseas consumer-goods companies including Unilever Plc and Procter & Gamble Co.
The group's listed unit Shanghai WhiteCat Shareholding Co posted a loss last year and is likely to stay in the red for the first quarter of this year as a rising yuan is denting its exports.
Earlier media reports said that Hutchison may take a stake in Shanghai WhiteCat Group to help it revamp. But Hutchison was not available for comments.
Hutchison paid 150 million yuan in 2006 for an 80-percent stake in Shanghai Hutchisn WhiteCat. The capital injection won't cause any change in the shareholding structure, a Reuters report said.
Shares of Shanghai WhiteCat Shareholding Co were suspended from trading yesterday in Shanghai pending the disclosure of ''an important issue.'' Its stock jumped by the 10 percent daily cap on Monday and last Friday.