Unifi pulls out of China joint-venture
18/02/2009
Sinopec Yizheng Chemical Fiber Co has agreed to take over the remaining 50% stake in its joint venture with Unifi for $9 million.
The two companies established the joint venture Yihua Unifi Fibre Industry in 2005, each taking a 50% stake. The venture produces, processes and sells polyester filament by using the equipment and resources of Yizheng Fiber in China.
The joint-venture is reported to have resulted in substantial losses, which is the reason given for Unifi pulling out. Reports from China suggest that the venture lost $7m in 2007, rising to losses of more than $25 million in the first nine months of 2008.
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