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The Board of Directors of Hong Leong Asia Ltd. (“the “Company”) refers to the announcement entitled “China Yuchai International Limited ("CYI") Announces Joint Venture in China with Caterpillar to Remanufacture Diesel Engines” released by the Company on 14 December 2009.
In connection with the joint venture, Yuchai Remanufacturing Services (Suzhou) Co., Ltd. (“Yuchai Reman”) was incorporated in the People’s Republic of China as a joint venture company between Guangxi Yuchai Machinery Company Limited (“GYMCL”) (a subsidiary of CYI, which in turn is a subsidiary of the Company) and Caterpillar (China) Investment Co., Ltd (“Caterpillar”). GYMCL and Caterpillar hold 51% and 49% interests respectively in Yuchai Reman.
The principal activities of Yuchai Reman are those relating to the remanufacture and sale of automobile parts, engineering machinery, diesel engines and components as well as research and development on remanufacturing technology.
The registered capital of Yuchai Reman is US$20 million. GYMCL’s 51% share of the contribution to the registered capital which amounted to US$10.2 million has been/will be satisfied as follows:
(a) US$1.53 million has been satisfied in cash and funded through internal sources; and
(b) The balance US$8.67 million will be paid in cash within two years from the establishment of Yuchai Reman.
By Order of the Board
HONG LEONG ASIA LTD.
Ng Siew Ping, Jaslin
Company Secretary
9 July 2010
Singapore
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