Kharkiv's Frunze Plant creating JV in China

15:42

OJSC Frunze Plant (Kharkiv), the largest metal plates and punched tin-plates producer in Eastern Europe and the CIS, is creating a joint venture (JV) with Anhua Hardware & Mesh Produkt in China.

According to a press release of the Ukrainian company, an agreement on the creation of a JV was signed on September 3 during the business forum with participation of representatives of business circles of Ukraine and China.

Frunze Plant Board Chairman Oleksanadr Vasylenko, who presented the company at the forum, said that the talks on the creation of the JV have been going on for six years.

He added that by late 2010, Frunze Plant plans to invest at least UAH 1.2 million ($150,000) in the JV in the form of technology and equipment. The Chinese company would contribute a building and connection to all utility and communications networks.

Ukraine would own a controlling stake in the company.

"The Ukrainian-Chinese forum showed that today the two states are really ready to create favorable conditions for the development of joint businesses. We felt that our state is ready to protect the interests of Ukrainian business on such a complicated market as the Chinese one," Vasylenko said.