WiseVest - YHI International

YHI International announced on Friday its purchase of 19.9% of OZ S.p.A., an internationally reknowned brand of alloy wheels designer. YHI also has a further option to purchase a further 15.6% in OZ should it want to. The acquisition of 19,9% of OZ S.p.A will cost YHI S$3.5 million.

YHI initially started off as an Asian-based manufacturer of alloy wheels, and its recent moves have shown its aim to be one of the world's leading players in alloy wheels and tyres manufacturing, distribution and design. It acquired US-based Pan Mar Corporation in 2005 and with the latest acquisition, it would enlarge its footprint into Europe. This was after its moves into Australia/New Zealand and Japan in 2003 and 2004 respectively. It is thus seen from here on the commitment made by the company for growth.

On top of that, the company's 2 new manufacturing plants was recently completed in end 2005, and they are located in Suzhou, China and Sepang, Malaysia. China is the world's fastest growing automobile market in the world, and it is forecasted to surpass Germany as the world's 2nd largest automobile market by 2008. On the other hand Malaysia is currently South-East Asia's largest automobile market. By having manufacturing facilities in these 2 large markets, YHI would be able to ensure the highest market penetration, allowing them to pursue more growth in this sector.