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02 Nov 2000
Chinney Alliance Acquires Swire Engineering Limited

Swire Pacific Limited ("Swire Pacific") and Chinney Alliance Group Limited ("Chinney Alliance") today announced jointly that a Sale and Purchase Agreement has been signed between the parties for the sale of Swire Engineering Limited from Swire Pacific to Chinney Alliance. Chinney Alliance has acquired full ownership and control of the company, which will be renamed Chinney Alliance Engineering Limited. The acquisition, concluded on mutually amicable terms, ensures that Chinney Alliance Engineering will continue to tender products to the Swire Group companies on pre-sale terms.

Mr. Martin Cubbon, Group Finance Director of Swire Pacific, commented, "Swire Engineering is a well-established distributor of a range of industrial, mechanical, electrical and civil engineering equipment products supplied to both public and private sector clients. It has achieved strong sales growth, and is well positioned to benefit from future opportunities. However, following a review of Swire Pacific's overall business portfolio, it was felt that the business would benefit from being part of a group more closely focused on the engineering services sector. We are therefore pleased to have reached agreement with Chinney Alliance for them to acquire the business from us, and wish them well in developing the business to its full potential".

Mr. Barry J. Buttifant, Managing Director of Chinney Alliance, said, "this is a good acquisition for Chinney Alliance. The Swire Engineering business fits in well with our existing portfolio of engineering, construction and related industrial and consumer product trading and service interests. We expect shortly to make another small investment in this sector, following which we shall have combined wholly-owned trading business within the Chinney Alliance Group which will generate annual sales of around HK$1 billion, at current levels, and will certainly increase our ability to develop related business in both Hong Kong and mainland China."

Swire Pacific is one of Hong Kong's leading listed companies, with diversified interests under the following divisions: Property, Aviation, Beverages, Industrial, Trading and Marine Services. Swire Pacific is primarily focused in the Hong Kong, mainland China and Taiwan region where the Swire Group has been established for over 125 years.

Chinney Alliance is an associate company of Chinney Investments Limited. Chinney Investments has diversified interests in property management, property investment and related property activities; superstructure construction work; foundation piling; garment manufacturing and trading. The Chinney Alliance Group is presently concentrated upon general trading activities of engineering plastics and a range of industrial products in Hong Kong and mainland China. It also has interests in associated companies involved in the provision of multi-discipline building services and supply of related products; and "new economy" e-commerce activities. Chinney Alliance is looking to further develop and expand these interests, whilst also considering some diversification into manufacturing and marketing opportunities.