The Hyundai Heavy Industry Co. and the State-owned Beijing Jingcheng Machinery and Electronics Holdings Co. signed an agreement early this week to form a joint venture.
According to the agreement, the two companies will mainly produce hydraulic pressure grabs and forklift trucks.
The two sides will invest US$27.5 million in the joint venture which has a registered capital of US$11 million. The Hyundai company will hold 60 percent of the joint venture's stock.
The joint venture is expected to produce 5,100 units of grabs and forklift trucks each year, which are worth 700 million yuan (US$84.6 million) to one billion yuan.
Addressing the signing ceremony, Liu Haiyan, deputy mayor of Beijing, spoke favorably of the cooperation between the two companies since it is in line with the strategy of modernizing Beijing's manufacturing sector.
(People's Daily June 20, 2002)