10.5% EMC Corp. ELKS (NYSE:EKC)
Industry: Consumer Goods
Ek Chor China Motorcycle Co. Ltd., incorporated in 1987, owns interests in and actively manages Sino-foreign equity joint venture enterprises in the People's Republic of China (PRC) (each, a Venture and, collectively, the Ventures), the first of which commenced operations in 1985. The Ventures are engaged in the design, manufacture and sale of motorcycles and motorcycle parts and components, automotive air conditioner compressors and carburetors, and certain other automotive parts and components. One of the Ventures, Luoyang Northern Ek Chor Motorcycle Company Limited (Luoyang Motorcycle), is engaged in the design, manufacture and sale of motorcycles. The Venture produced an aggregate of 188,782 motorcycles in 2001. The Company owns a 55% interest in this Venture. Another Venture, Shanghai-Ek Chor General Machinery Co., Ltd., is a domestic manufacturer of automotive air conditioner compressors in the PRC. The Venture also manufactures receiver-dryers for automobiles. The Company owns a 50% interest in this Venture. Zhanjiang Deni Carburetor Co. Ltd. (Deni Carburetor), is engaged in the design, manufacture and sale of motorcycle and automotive carburetors. In late 1994, Keihin Seiki Mfg. Co., Ltd. (Keihin Seiki) of Japan became a participant in Deni Carburetor. Keihin Seiki has provided updated carburetor technology to the Venture, enabling it to produce carburetors for sale to automotive and motorcycle manufacturers in the PRC and for export. Keihin Seiki's participation has enabled Deni Carburetor to become a certified carburetor supplier for Shanghai Volkswagen, one of the major manufacturers of automobiles in the PRC. Beginning in mid-1999, Shanghai Volkswagen reduced significantly the production of vehicles using carburetors. This development has adversely affected the Venture's sales of automobile carburetors. However, the Venture was able to increase its sales of motorcycle carburetors in 2001. The Company owns a 28% interest in this Venture. Shanghai Ek Chor Nissei Co., Ltd. (Shanghai Nissei) commenced operations in May 1995. Shanghai Nissei was formed to manufacture certain motorcycle and automotive instrumentation parts and components, including speedometers, tachometers and instrument panels. A factory facility for the Venture's operations was completed in the Shanghai Xinzhuang Industrial Zone in December 1996. The Venture resulted from discussions that commenced in April 1994 among the Company and the other foreign participants in the Venture, Dai Nisshin Corporation of Japan and Nippon Seiki Co Ltd, a Japanese manufacturer of instrumentation parts and components. The local PRC participant is Shanghai Precision & Scientific Instrument Corporation, which owns a 20% interest in the Venture. The foreign participants collectively hold 80%, and the Company has an effective interest of approximately 34%. Ningbo Advance Fengtong Motorcycle Co. Ltd. (Ningbo Motorcycle) was formed during the second half of 1995 to manufacture 90cc and 100cc model motorcycles and motor scooters and 750cc model motorcycles with a side car. The local PRC partner is Zhejiang Fengtong Electro Mechanical (Group) Co., which holds a 35% interest in Ningbo Motorcycle. Advance Motorcycle Co Ltd. (Advance Motorcycle) previously owned the remaining 65% interest in Ningbo Motorcycle. Advance Motorcycle was established as an 80%-owned subsidiary of Ek Chor Company Limited, a wholly owned subsidiary of the Company, with the remaining 20% owned by Forum Resources Limited. The Board of Directors of the Company decided in 1996 to terminate the Company's participation in this Venture. The Board subsequently reconsidered this decision and instead decided in 1998 to reduce Advance Motorcycle's investment in Ningbo Motorcycle. In April 1998, Advance Motorcycle entered into an agreement with a Hong Kong corporation to sell a portion of its stake in Ningbo Motorcycle. The Company now owns an effective 20% interest in Ningbo Motorcycle. Ningbo Motorcycle changed its name to Ningbo Advance Benteng Motorcycle Company Limited on August 10, 19
As Of: 10/07 00:00 ET
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