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Carborundum Universal to revamp China business

BS Reporter  |  Chennai 

Carborundum Universal Ltd (CUMI), part of $3 billion Murugappa Group, has signed a ‘division agreement’ with its joint venture partner China Metallurgical Geology Burea (CMGB) for restructuring the JV Jingri-Super Hard Materials Co Ltd (Jingri) in China.

Under this, the business of Jingri would be split into diamonds and diamond tools, and abrasives, the company informed the Bombay Stock Exchange on Tuesday.

The diamond and diamond tools business (including all relevant fixed and current assets, liabilities, employees, contracts, etc) would be transferred to a separate company to be formed and fully owned by

Similarly the abrasives business would be transferred to a new company to be formed under the name ‘Abrasives and Ceramics China Ltd’. This would be a subsidiary of CUMI, India (with a part of the shareholding being held by International Ltd, Cyprus, a 100 per cent subsidiary of CUMI, India).

In respect of a few common assets, both the newly-formed entities would be entitled to use the facilities, the cost of which would be shared based on actual usage.

The division agreement is subject to all regulatory approvals both in China and India. The effective date of the restructuring would be April 1, 2009, and the results of operations of the respective businesses from April 1, 2009, till the date of regulatory approval of the division agreement would be to the account of the respective

First Published: Wed, September 02 2009. 00:15 IST