China-Israel investment fund pioneer Infinity Group is leading an $18 million (RMB 120 million) investment in Harbin No. 1 Tools Manufacturing Company Limited, a Chinese production and scientific research base for precise and complex cutting tools.
Infinity said that the investment will support the advancement of the company’s technological capabilities with the goal of competing on the international market.
The investment announcement was made during a ceremony earlier this week in Tel Aviv, during a visit by Party Secretary of Harbin Gai Ruyin, Harbin Vice Mayor Cong Guozhang, other senior level Harbin officials and the management of the high tech zone in Harbin. The group was hosted by Clal Industries and Investments Ltd. (TASE: CII) co-CEO Avi Fischer, who is also chairman of Infinity Group, and Infinity I-China managing partner Amir Gal-Or.
Harbin Party Secretary Gai said, “We feel honored to cooperate with IDB/Infinity. Harbin used to be the second home town of the Jewish community. There are deep and heartfelt emotions between Harbin and the Jewish people. The visit of this delegation, headed by me, has two purposes: to promote our existing friendship and in the 21st century, to achieve the great results that will accompany continuing to build this relationship between the Jewish people and Harbin."
Party Secretary Gai continued, “Our city is experiencing very rapid development and growth. Tel Aviv is a beautiful city. I sincerely hope that we can work hard together to connect Tel Aviv and Harbin very closely. I also know that IDB/Infinity has diversified portfolio companies. I think there is great potential for these in Harbin. Together with IDB/Infinity we hope to create high quality products that can be sold to the Chinese market. I think IDB/Infinity has strategic vision in working closely with Harbin and investing in the companies of Harbin. I believe that based on our very good historic relationship, what we have achieved in our city and the huge market, your products will be the first batch of successful cases that will attract other businesses to do the same.”
Gal-Or said, “The deal with Harbin No. 1 Tools Manufacturing Company Limited has particular significance. Infinity is not only bringing investment and technology to the company but also the necessary management experience to help this state owned enterprise smoothly transition into a private company. Infinity Group’s activity at Harbin No. 1 Tools may likely set a precedent and establish a model for reform that can be applied to other state owned enterprises in China in the future.”
Harbin is the capital city of Heilongjiang Province and a political, economic and cultural center of Northeast China.
Infinity Group currently manages eleven funds, nine in China. Infinity has a portfolio of 45 companies and has made 22 successful exits. Infinity, which has the greatest number of RMB funds in China, was founded by the IDB Group and the China Development Bank.
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010