Chennai, July 31 - Abrasives and ceramics manufacturer Carborundum Universal (CUMI) is planning to restructure its Chinese operations by hiving off its abrasives business into a new subsidiary.

'The Chinese operations registered a steep decline due to lower export sales of abrasives and diamond tools. For optimising the operations, the company is exploring demerger of the abrasives and the diamond and diamond tool businesses of the Chinese joint venture,' the company said in a statement.

'The abrasives business would be housed in a new 100-percent subsidiary of Carborundum in China.'

CUMI, part of the $3-billion Murugappa group, holds 49 percent stake in the Chinese venture, Jingri Cumi Super Hard Metal Co that manufacturers synthetic diamonds, tools and abrasives.