ST Engg to book S$61m charge on China venture

Singapore

ST Engineering is to make a significant S$61 million writedown in the third quarter on an investment in China, as it fears that this joint venture with a Chinese state-owned enterprise will soon run out of cash.

This comes amid an ongoing review of its Chinese business for more than two years now - with the Chinese business hurt by the severe oversupply in various industries in China.

The engineering group said Jiangsu Huatong Kinetics and Jiangsu Huaran Kinetics - collectively known as JHK - had proposed on Tuesday to cease production to cut operating losses. JHK is the joint venture between ST Kinetics and China's state-owne…