KUALA LUMPUR (Jan 27): ENG KAH CORPORATION BHD [] has entered into an agreement with Cosway (China) Co. Limited to establish a joint venture company in China to manufacture cosmetics, toiletries and household products.

The company said on Friday that Cosway China had acquired the entire interest and control of Guangzhou Cosway Cosmetic Manufacture Co. Ltd which would be the joint venture company (JVC) to manufacture cosmetics, toiletries and household products.

Eng Kah said it would acquire a 30% stake in the JVC and provide the manufacturing experience, expertise, TECHNOLOGY [] and production management and know-how to the JVC in order for the JVC to commence its manufacturing activities to support the business of Cosway China.

The company said the joint venture was in line with its plans to expand and develop its manufacturing business overseas, including in China.

Eng Kah said it would finance the equity participation via internally generated funds, and that there were no liabilities to be assumed by it arising from the proposed joint venture business.

“The proposed joint venture business is expected to contribute positively to the future earnings of the company,” it said.