Yue Yen looks to take on board own materials operation
Yue Yuen Industrial Holdings, the branded athletic and casual footwear maker, is planning to acquire a raw material operation from its Taiwan-listed parent, Pou Chen Yue Yuen, a publicly listed company in Hong Kong
Executive director Steve Li yesterday has confirmed the report, saying the proposed purchase was part of a ‘vertical integration strategy’ designed to reduce production costs
Yue Yuen's latest expansion plan follows its acquisition, in February, of a controlling stake in another Hong Kong-listed sports shoe manufacturer, Symphony Holdings. Through Symphony's mainland operations, the company is to expand its retailing business in China.
According to a brokerage report, Yue Yuen, which makes shoes for major international brands such as Nike, adidas and Reebok, currently has only 15 retail outlets in Beijing.
