Brother Industries has received an official permit from the Chinese government to establish a wholesale company as its wholly owned subsidiary in Shanghai.

Slated for establishment this month, Brother (China) Ltd. will be capitalized at $10 million and begin operation in June. The new company will import and export IT products, industrial sewing machines, and domestic sewing machines, as well as distribute the goods procured in China.

Brother anticipates that the subsidiary will generate US$162.0 million in sales in fiscal 2006.