DK-Schweizer Nederland BV, a subsidiary of the Malaysian DK Leather Corp Bhd, distributor of automotive leather upholstery, is to obtain the entire stake in DK-Schweizer Germany for 25,000 shares worth RM(Malaysian Ringgit)4.9 ($1.32) each in an attempt to expand its business in Germany and improve the European distribution network. The proposed subscription will be financed with DKN’s own funds and is not expected to affect the corporation’s earning for the financial year ending March 31 2005.

An investment holding company, DKC (DK Leather Corporation Berhard) was established in 2001. Its subsidiaries are principally involved in the manufacture, assembly, installation and retail of automotive leather upholstery, including seat covers and accessories, such as steering wheel and gear knob covers, in Malaysia, Singapore, Australia and USA for car makers Proton Perdana, Ford, Honda, Hyundai, Kia, Perodua, Toyota, Volvo and others.

The brand names for the group’s leather products are DK-Schweizer, KK Best and Tomo Leather. The group operates six plants and nine retail outlets with three in Kuala Lumpur, two in Penang, one in Australia, Singapore, the USA and the Netherlands.