Worldwide Manufacturing USA to Acquire Chinese Diecaster

Shanghai operation produces automotive components, and more

Worldwide Manufacturing USA Inc., San Bruno, CA, has signed a letter of intent to acquire a Chinese diecaster and machining operation, Shanghai Lizun Precision Mechanical Products Manufacturing Co. Ltd. The purchased will be structured as an exchange of stock: Worlwide will pay the owner of Shanghai Lizun over 1 million restricted shares of its own common stock in exchange for the factory’s total net and invisble assets. Also, Worlwide will invest $300,000 to improve the factory’s equipment, to increase productivity.

Worldwide Manufacturing USA is a contract manufacturer that describes itself as "an engineering and quality control firm, specializing in international contract manufacturing and its logistic services." It is also a direct manufacturer of automobile air-conditioning units. It already opereates two wholly-owned subsidiaries in China, Shanghai Intech Electro Mechanical Products, in Shanghai, and Chengde Science & Technology Co. Ltd., in Changchun City.

Shanghai Lizun operates a diecasting shop and machining operation that produces components for the automobile, motorcycle, telecommunications, and home supply industries, in a plant in suburban Shanghai. It employs 107, and estimates 2005 revenues will be $3 million and projects after-tax net profits of $300,000.

Worldwide stated it should complete the takeover by the end of September. According to Worldwide CEO and president Jimmy Wang, "Worldwide continues to move forward on its plan to purchase at least one new factory in each of its product groups: Foundry, Machining and Stamping, Electronics, and Fiber Optics Components -- setting the stage for anticipated explosive growth in the near future."

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish