China Kunda Technology Holdings, the provider of precision moulds, plastic injection parts and In-Mould-Decoration (IMD) products to the car and consumer electronics industries, says its wholly-owned subsidiary Kunda Mould (Shenzhen) has formed a RMB50 million ($10.4 million) Joint Venture (JV) with Jilin Guoan Group Co. to establish an automotive mould manufacturing plant in Changchun, Jilin Province, China.

Located within range of established automakers in Changchun, the newly formed JV Company, Changchun Kunda-Guoan Automobile Plastic Mould, should benefit from the strong demand for automobiles in China. For its majority 60% stake in the JV, China Kunda will contribute RMB30 million in cash. The remaining 40% stake will be held by Guoan through a cash contribution of RMB10 million and the injection of a 42,612 square meters land asset to build the plant. Although valued at RMB17.6 million, the land will be injected at a value of RMB10 million as agreed between China Kunda and Guoan.