IANS reported that cycle and engineering products manufacturer Tube Investments may exit China, where it manufactures cold drawn welded tubes, if it does not find a local partner.
Mr L Ramkumar MD of Tube Investments said that “A team has gone to China to explore options. We may continue to be in China if somebody is willing to work with us or we may exit the country.”
He said that “We thought the market for CDW tubes would go up but it turned out otherwise.”
However, he said he did not believe China is a 'jinxed country' for the USD 3 billion Murugappa Group of which Tube Investments is a part even though another group firm, Carborandum Universal, severed ties with its Chinese partner in a joint venture there.
Carborandum recently signed a division agreement with the Chinese partner under which it would run the abrasives business through its wholly owned subsidiary while transferring other businesses to the other party. Last month, the company board gave its approval for exploring options like being a contract manufacturer or tying up with another partner.
(Sourced from http://www.steelguru.com/news/index/2009/09/07/MTEwNTEy/Tube_Investments_may_exit_China.html
Monday, September 7, 2009
Tube Investments may exit China
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