CNS restructures, presenting angles for investors

CNS, with eight subsidiaries and seven affiliates, is operating in the fields of mechanic engineering, chemicals, electronics, information technology, food, real estate, and commercial services.

CNS has implemented its restructuring plan to focus on its main sectors of supporting industry production (plastic and metal equipment, parts, machines, model…) and household products manufacture (electronics, plastics, cigarette…), as well as develop hi-tech products of wind power turbine and integrated circuits.

“Our target from now to 2015 is to focus on strongly developing ancillary industries, in accordance with the national policy of cutting down production costs and localizing the industry of Vietnam; to become an edge industry of Ho Chi Minh City in sectors of mechanic engineering, chemicals, electronics, information technology, and food.,” said Nguyen Van Tho, general director of CNS. 

As a result, CNS will withdraw from some affiliates and subsidiaries, which now tend to focus on trading and service activities instead of manufacture.

In details, CNS said it plans to decrease its stake from 51 per cent to 20 per cent in Saigon Electronic & Industry Services JSC. Other plans disclosed by CNS include these:

--a decrease its stake from 57.38 per cent to 20 per cent in Saigon Plastic JSC.

--a decrease of its stake in Huu Nghi Trading and Industry JSC, specializing in bicycle, motorcycle manufacture,  from 87.26 per cent to 20 per cent.

--a decrease of its stake in Telecommunications Industry Electronics JSC, specializing in television, electronic display ordinary calling system production, from 70 per cent to 20 per cent.

--a reduction of its stake in Ben Thanh Rubber JSC rom 29.79 per cent to 20 per cent in Ben Thanh Rubber JSC

--a reduction in Do Thanh Technology JSC, producing plastic products and designed model for plastic products, wfrom 18.96 per cent to 10 per cent.

--a cut in its share of Ben Thanh Trading Investment JSC from 29 per cent to 15 per cent.

CNS would make its withdrawal in various forms and welcome all partners, especially foreign investors wanting to acquire CNS’s stake, said Hoang Minh Tri, the director of CNS’s administration and human resources department.  

Meanwhile, CNS has established two joint ventures with foreign investors in sectors of precious model and wind power recently.

On March 2012, CNS jointly established a joint venture with a Russia partner and another local corporation to develop a wind farm, expected to be located in Binh Thuan province. CNS holds 40 per cent stake in this joint venture.

CNS has also contributed over 50 per cent stake in a joint venture with a Singapore corporation to develop a precious mold manufacturing plant, specializing in slug, burr and forging stock for machine parts in high dimension and weight.