CHINA-BASED lighting systems and wire harness maker JK Yaming yesterday said it is selling a 20 per cent stake in one of its subsidiaries, Fujian JK Wire Harness Co Ltd (FJKWH), to the latter's largest customer, Japan's Sumitomo Wiring Systems Ltd, for 19.9 million renminbi (S$4.1 million).

Sumitomo Wiring Systems is one of the world's largest manufacturers of wire harnesses. JK Yaming said the stake purchase by Sumitomo Wiring would strengthen FJKWH's research and development competency, and the group expects growth in the wire harness division to be driven by higher sales orders from Sumitomo Wiring. The deal will reduce JK Yaming's stake in the subsidiary to 55 per cent from 75 per cent.

《The Business Times》