On 28 July 2011, Xingda International (HKG:1899) agreed with Guang Rao Hong Kai Investment Company Limited (Hong Kai) and Guang Rao Hong Yuan Investment Company Limited (Hong Yuan) for the formation of JV company Shandong Xingda Steel Tyre Cord Co., Ltd.

The total investment amount of the JV company is US$219.46 million. The maximum investment amount to be contributed by Xingda to the JV company will not be more than US$182.71 million. The JV company will be owned as to 51% by Xingda, 24.5% by Hong Kai and 24.5% by Hong Yuan.

The JV company's scope of business will be the production and sale of radial tyre cords and hose wires, and the distribution, business import and export of self-produced products and products of the same type. The JV company will provide Xingda cost benefits for the radial tire cords manufacturing and distributing businesses. Both Hong Kai and Hong Yuan are investment holding companies.

Source:Infocast News