Catalist-listed Chasen Holdings today announced that wholly-owned subsidiary Chasen (Shanghai) Hi-tech Machinery Services has entered into a joint venture with Sinotrans Air Transportation Development Co. on 21 May 2010 to further expand its market in China.

Under the joint venture agreement, Chasen (Shanghai) and Sinotrans will each hold a 50% equity interest in the joint venture company. Sinotrans is a publicly listed company incorporated in China.

The joint venture is a strategic integration of Sinotrans’ logistics and transportation capabilities in the China domestic market, with the group’s specialised international relocation expertise and manufacture of wooden packaging. This would translate into competitive advantage when bidding for jobs that require more holistic logistics services in China.

Chasen says domestic plant relocation activities within China is expected to increase further in the years ahead as more companies relocate to lower cost production centres further inland from their current coastal premises. The joint venture is expected to contribute positively to the group’s financial performance in the financial year ending 31 March 2011.