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China's UE Furniture to set production base in Romania, invest $9.5 mln

China's UE Furniture to set production base in Romania, invest $9.5 mln China

BUCHAREST (Romania), February 20 (SeeNews) - Chinese company UE Furniture CO Ltd. said on Wednesday it plans to invest $9.5 million in a production base in Romania, in the central-western county of Hunedoara.

The company's shareholders approved on Wednesday a proposal to invest in Romania in production and other activities necessary for the company's development, including but not limited to the purchase of land, equipment and liquidity, UE Furniture said in a statement filed with the Shanghai Stock Exchange (SSE).

In order to start operations in Romania, UE Furniture will establish in Romanian a company - Yongyi Romanian Furniture - through its wholly-owned subsidiary Yongyue Hong Kong Investment Co. Ltd.

The company will have a registered capital of 5 million lei ($1.1 million/1.05 million euro) and will focus on the development, production and sales of furniture and accessories.

The investment is in line with the company's global development strategy, which in turn is aligned with China's One Belt, One Road initiative for more active economic presence of the country globally.

EU Furniture was founded in China in 2001 and makes mainly office chair and massage chairs, sofas and functional chair fittings. It is listed in Shanghai Stock Exchange's main board since January 2015, according to data posted on its website.

($= 0.8815 euro)