Brilliance China To Boost Capital Expenditure For New Joint Venture.

Brilliance China Automotive Holdings said it would ask shareholders to approve a capital increase of $273 million for its carmaking joint venture. Brilliance China will contribute $139.2 million, or 51 percent, of the increase in capital for Brilliance Jinbei Automotive Co. Its partner, Shenyang Jinbei Automotive Co. will contribute $133.8 million, or 49 percent of the increase, in the form of assets including the technology to develop and produce car parts for multipurpose vehicles and a training center jointly owned with Toyota Corp.

The capital injections reflect each partner's shareholding in the venture. Jinbei Auto shareholders approved their contribution last month. Brilliance China will ask shareholders to approve the increase in a Feb. 26 special general meeting. The company said the technology transfer will benefit the company as a whole as well as provide capital for the joint venture's growth. The capital increase will raise the venture's capital to $444.2 million from $171.2 million.