HCMC – Steelmaker Hoa Phat Group announced it has contributed VND999 billion to the establishment of the Hoa Phat Home Appliances JSC.
The new firm has a charter capital of VND1 trillion, with 99.9% funded by the steelmaker. The new business will manage the production and sale of household appliances, reported VnExpress.
Last year, Hoa Phat Group implemented its restructuring plan with the establishment of corporations in charge of each of the group’s fields of operation, including Iron and Steel Corporation, Steel Pipe and Color-coated Steel Sheet Corporation, Agricultural Development Corporation and Real Estate Development Corporation.
The group also decided to divest from the furniture segment, explaining that this sector is associated with manual craft, home economics, and uses a lot of unskilled labor; thus, it is not suitable for a large-scale production model that uses modern production lines.
According to the group’s recent report, it had signed a contract to transfer 99.6% of stake in Hoa Phat Furniture JSC to the Eden Vietnam Furniture Company, with a transfer price of nearly VND900 billion.