China Huiyuan Juice Group Ltd. (01886.HK) has sold a manufacturing plant in Hubei province for 360 million yuan (US$57.78 million), China Business News reported Tuesday.
The move follows the disposal of two factories in Shanghai and Chengdu last year
In the Hubei plant sale, the company expects to ease overcapacity brought about by overexpansion in the past few years. More plants could be jettisoned in the future, the report said, citing unnamed analysts.
Chairman Zhu Xinli said the company will continue to optimize its assets in the coming three to five years and could shed one to two factories every year from its portfolio of 60 plants.
China Huiyuan has recently undergone restructuring to streamline its operations, the report said. In 2008, its proposed takeover by Coca-Cola was rejected by regulators.
The Hubei plant, built in May 2003, had assets estimated at 253 million yuan as of the end of 2013. China Huiyuan will allocate 107 million yuan from the sale proceeds for general operations, the report said.
Last year, the company sold its Shanghai plant for 300 million yuan and its Chengdu plant for 350 million yuan.
– Contact us at [email protected]