Trading house Marubeni Corp. said Friday it will dissolve its unprofitable Chinese subsidiary Tianjin Ronghong Sales & Distribution Co. by the end of fiscal 2002.
The Tianjin-based wholesaler and distributor of food products to mass-sales stores in China is unlikely to turn a profit even if it remains in business, Marubeni said.
Capitalized at $5 million, Tianjin Ronghong is owned 65.7 percent by Marubeni. Other owners include Marubeni (China) Co., which holds a 7.3 percent stake in the company.
Marubeni said the effect of the dissolution on its fiscal 2002 financial results will be insignificant.