CUMI recasts Chinese arm biz

CHENNAI: Carborundum Universal ( CUMI), part of Murugappa group has signed a "division agreement" with its Chinese joint venture partner, China Metallurgical geology burea ( CMGB) for restructuring the JV, Jingri- CUMI super hard materials Co ( Jingri) in the country.

As per the pact, the business of Jingri would be split into two with diamond and diamond tools businesses ( including all relevant fixed assets, current assets, liabilities, employees, contracts etc) transferred to a separate company to be fully owned by CMGB.

Similarly, the abrasives business ( including all assets, liabilities, employees, contracts etc,) would be transferred to a new company to be formed under the name Cumi Abrasives and Ceramics China. It would be a subsidiary of CUMI, India with a part of the holding being held by Cumi International, Cyprus, a 100% subsidiary of CUMI, India.

CUMI informed stock exchanges, in respect of a few common assets, both the newly formed entities would be entitled to use the facilities, the cost of which would be shared based on actual usage. The division agreement is subject to all regulatory approvals both in China and India and effective date of restructuring of the businesses would be April 1, 2009.