Yue Yuen established a joint venture called Oftenhrich Holdings Limited with Upmax Investments Limited, which is a
member of the Golden Chang Group. The joint venture will focus on safety shoes/casual shoes manufacturing. The registered share capital of Oftenhrich Holdings is about
US$58 million, in which Upmax holds a 55% with the remainder held by the Group.
Golden Chang was established by the Ho family, which has over fifty years of experience in leather processing and footwear manufacturing originated from Taiwan. Golden Chang is the market leader in safety shoes manufacturing and its principal production base is located in Zhongshan, Guangdong Province, China. Major products of Glory Shoes are cementing, stitchdown and injection shoes.
Major customers include Wolverine, Wal-Mart, Timberland, and Dr. Martens. The annual turnover of Golden Chang was over US$200 million with a production of about 12 million pairs of shoes.
For the joint venture, Golden Chang will be responsible for operation and production with the input of its technical expertise in safety shoes manufacturing whereas Yue Yuen will have an input on the finance and information technology side.
Commenting on the joint venture, Mr. Edward Ku, executive director for the Group says, “Teaming up with a well-experienced manufacturer will offer immediate contribution and product category diversification opportunity to the Group. Furthermore, the combination of the expertise from two market leaders will enhance the competitiveness of the joint venture in footwear manufacturing providing high quality services for customers in the safety/casual shoes segment.”
