Watts Industries has agreed to form a joint venture with the Yuhuan County Cheng Guan Metal Hose Factory located in Taizhou, Zhejiang Province of the Peoples Republic of China. Cheng Guan, with annual sales of approximately $13 million, is a manufacturer of a variety of plumbing products sold both into the Chinese domestic market and export markets. Its product line includes hose, hose connectors, multi-layer tubing and stainless steel braided hose.