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Toymaker Kiu Hung to diversify into Inner Mongolia

Apr. 17, 2007 (China Knowledge) – Kiu Hung International <381>, a toymaker diversifying into energy, plans to invest HK$620 million over the next five years in its newly acquired coal mine in Inner Mongolia, according to chairman Joseph Hui Kee-fung.


Hui indicated that no decision had been made on financing the investment, the South China Morning Post reported.


Production at Kiu Hung's mine is expected to begin in the fourth quarter and production volume is forecast to reach three million tons next year and 12 million tons by 2011.


The mine has an estimated 106 million tons of coal worth RMB 17 billion, Hui said, based on the current market coal price.


Kiu Hung is looking to invest in other energy and natural resources projects but will continue to develop its toy manufacturing business, Hui said, adding the firm might spin off its energy business in the future.

 

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