Unifi, Kaiping Sign Letter Of Intent To Form Joint Venture
Unifi Inc., Greensboro, N.C., and Kaiping Polyester Enterprises Group Co., China, have signed a letter of intent to form a joint venture company in Kaiping, a city in Guangdong province, China, to manufacture and sell polyester and nylon products. It is anticipated that Unifi will own 75 percent of the joint venture, which is estimated to generate about $300 million in annual sales.Kaiping Polyester, a company owned and operated by the Kaiping city government, is one of the largest polyester textile filament producers in China. Kaiping Polyester also owns about 56 percent of Guangdong Kaiping Chunhui Co. Ltd., a public company traded on Chinas Shenzhen Stock Exchange. Kaiping Polyesters ownership interest in Guangdong Kaiping is anticipated to be part of the assets brought to the joint venture.The transaction is expected to close by the end of this year, pending completion of due diligence procedures; negotiation and agreement of definitive terms; and government,third-party and corporate approvals.
Fall 2003