Swire Sells Interest in Schneider Venture

Swire Pacific Ltd. today announced the sale of its 49% interest in Schneider Swire Ltd. to partner Schneider Electric Industries SA for HK$95 million.

Commenting on the sale, Mr. Martin Cubbon, Group Finance Director of Swire Pacific, said, "Schneider Swire was formed in 1996 when we combined our joint interests in the manufacture and sale of low voltage distribution equipment in Hong Kong and Mainland China. We have been pleased by the success of the joint venture, which is now well established and poised for further growth. However, we have decided to dispose of our interest at this time following a regular strategic review of our overall business portfolio."

Mr. Russell Stocker of Schneider Electric Industries said, "It has been a very beneficial partnership, but we are pleased to have reached this agreement to acquire full control of the venture. The business is performing well and has strong volume and growth prospects. As a wholly-owned subsidiary, the company will continue to serve the Hong Kong and Mainland markets and we will be looking to expand our share of this growing market."

Schneider Electric (9.8 billion Euros sales in 2001 with 72,000 employees) is a worldwide leader in power and control (electrical distribution and industrial automation). With a global presence in 130 countries and links to strong and international names such as Merlin Gerin, Modicon, Square D and Telemecanique, Schneider Electric has a comprehensive product line-up to serve four markets: residential, building, industry and energy & infrastructure.

Swire Pacific is one of Hong Kong's leading listed companies, with diversified interests under five operating divisions: Property, Aviation, Marine Services, Beverages and Trading & Industrial. 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.