Highway Holdings Increases Ownership in Myanmar Manufacturing Entity to 84 Percent
April 18 2017 - 8:30AM
Highway Holdings Limited (Nasdaq:HIHO) today announced the company
has increased its ownership interest to 84 percent at its Myanmar
subsidiary. Terms were not disclosed.
The Myanmar subsidiary currently operates
approximately 20,000 sq. ft. of manufacturing and assembly space in
Yangon, Myanmar – including the recent expansion of manufacturing
space at the same location. Highway Holdings has utilized
this facility for several years under a subcontracting arrangement.
The company previously held a 75 percent ownership interest
in this Myanmar entity. Commerce law changes in Myanmar during the
past few years have allowed non-Myanmar companies such as Highway
Holdings to acquire interests in businesses that are domiciled and
operating in Myanmar. These businesses are designated as
“foreign companies.”
“The increased ownership interest reflects our
confidence in Myanmar and our latest success in transitioning new
component manufacturing processes from our main manufacturing
facilities in China to our Myanmar subsidiary. The operation in
Myanmar is supported by our operation in China and enables us to
realize meaningful cost-savings and a competitive advantage, while
maintaining the highest quality standards for our customers,” said
Roland Kohl, chairman, president and chief executive officer of
Highway Holdings.
“We are gratified by the confidence of our
customers in the company’s high-quality production standards in
Myanmar, supported by ongoing training and monitoring by our staff
in China. We are pleased with our progress to date in Myanmar
and look forward to further opportunities for additional business
based on demonstrated quality, service and capacity,” Kohl
said.
About Highway HoldingsHighway Holdings produces
a wide variety of high-quality products for blue chip original
equipment manufacturers -- from simple parts and components to
sub-assemblies and finished products. Highway Holdings’
administrative office is located in Hong Kong and its manufacturing
facilities are located in Shenzhen in the People’s Republic of
China and Yangon, Myanmar.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking
statements which involve risks and uncertainties, including but not
limited to the ownership and operation of the Myanmar facility,
additional growth potential at this facility, economic,
competitive, governmental, political and technological factors
affecting the company's revenues, operations, markets, products and
prices, and other factors discussed in the company’s various
filings with the Securities and Exchange Commission, including
without limitation, the company’s annual reports on Form 20-F.
CONTACT: Gary S. Maier
Maier & Company, Inc.
(310) 471-1288
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