Yue Yuen to stay despite unrest

Yue Yuen to stay despite unrest

HONG KONG (Reuters): Sports shoe maker Yue Yuen Industrial
(Holdings) Ltd said yesterday it had no intention of closing its
operations in Indonesia despite the unrest and the company's
business was operating normally.

"The company has no intention of closing its operations in
Indonesia and no contingency plans for the current political
turmoil in Indonesia if that leads to the closure of the
operation," Yue Yuen said in a statement.

"The company's Indonesian operations are carrying on business
as normal and the directors do not consider necessary to make any
provisions for the company's investments or operations in
Indonesia," the company said.

Yue Yuen said that on average its facilities in Indonesia
produced less than 12 percent of its annual production by value.

"If a closure were forced upon the company, its directors
believe that would not have a significant effect on the business
of the company as the company has ample production capacity in
China and Vietnam to which production volume in Indonesia could
be transferred," it said.