
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, February 16, 1995                   TAG: 9502160075
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

FIRST UNION, ASIA GROUP JOIN FORCES

First Union Corp. said Wednesday that it is establishing an Asian-Pacific trade alliance with an Asian financial company.

First Union, Charlotte, N.C., parent of Roanoke-based First Union National Bank of Virginia, and the Lippo Group will combine their marketing efforts in a trade finance network that will include seven existing Lippo Group offices in Southeast Asia and the Pacific Rim.

In addition, First Union plans to open a Los Angeles office to process letters of credit and provide related services for its customers. The office will open in April, subject to regulatory approval, as a branch of First Union International Banking Corp.

First Union and the Lippo Group will launch a trade initiative that will provide international products and services through offices in Jakarta, Indonesia; Manila, Philippines; Kuala Lumpur, Malaysia; Bangkok, Thailand; and Ho Chi Minh City and Hanoi in Vietnam.

The two banking companies first joined forces in December in Hong Kong through the Hongkong Chinese Bank, serving customers in Hong Kong, China and the United States.

Executives said the broader program will allow Lippo to sell more banking products, while First Union will gain access to an existing financial and trade network in Asia.

Steven Bash, managing director for First Union's operations in Asia, Europe, the Middle East and South Africa, said the Los Angeles office will permit more rapid financing for bank customers without the restrictions of time zones.

Speaking from Hong Kong during a telephone news conference, Bash said the joint venture will assist First Union customers who sell in Asia or who import products from Asia. Through the partnership with the Lippo Group, he said, First Union will have access to people in Asia who can act as intermediaries in trade relationships.

John Muncy, executive vice president of the Lippo Group, said it will gain improved access to American markets through the alliance with First Union.

First Union processed more than $4 billion in trade finance transactions in 1994. This includes a leading presence in Latin America with $1.6 billion of those transactions. Latin America has been one of the fastest-growing markets for Hong Kong exporters over the last two years.

First Union has international operations in Charlotte and Miami.

by CNB