Yapp Auto employees vote down takeover
Shanghai Daily news
Employees at Yangzhou Yapp Auto Plastic Parts Co, China's dominant fuel tank
maker, have vetoed a takeover proposal from top Belgian chemical company Solvay
SA, fearing possible job demotions.
A year ago, Solvay plastic-processing
unit Inergy Automotive Systems, a joint venture with Cie Plastic Omnium SA of
France, signed a memorandum of understanding to purchase a 55 percent stake in
Yapp for an undisclosed sum.
"Employees have rejected the takeover," an
official at Yapp's management office said yesterday by phone. "And that's an
express of corporate democracy."
State-owned Yapp, based in Yangzhou in
eastern China's Jiangsu Province, is a joint venture between the State
Development & Investment Corp, China's largest investment holding company,
and Shanghai Automotive Industry Corp.
China requires that foreign takeover
proposals involving a state company receive majority approval in an employee
"We're doing things well with SAIC at the moment, so there's no
need to introduce foreign capital now," the official said.
official attributed the rejection to employees in the company's research and
Staff in the R&D sector voted against the takeover
over concern they would be transferred to factory positions because Inergy
planned to make Yapp its manufacturing base in China, the official
Yapp's clients in China include big names such as Germany's Volkswagen
AG and Ford Motor Co and General Motors Corp of the United States.