SINGAPORE: The Board of Directors of China Sunsine Chemical Holdings Ltd. has notified that its wholly-owned subsidiary, Shandong Sunsine Chemical Co., Ltd has entered into an Investment Agreement with the People’s Government of Shanxian County (local government), pursuant to which the local government has agreed to grant Shandong Sunsine a piece of land located in Shandong Shanxian Chemical Zone for Shandong Sunsine to carry out an investment project in phases to further expand its capacities in rubber chemical products, for a total investment amount of up to RMB 2.5 billion, of which RMB 1.5 billion will be invested in property, plant and equipment.
Accordingly, the local government will be responsible for the supply of water, electricity, gas, telecommunications, internet and drainage, as well as to even the land for construction.
With the acquisition of the land, the Group is building up another comprehensive production base to expand its production capabilities, and will further strengthen its market leadership position in the rubber chemicals industry in the world.
The acquisition will be funded by internal resources and is not expected to have any material impact on the consolidated net tangible assets per share or earnings per share of the Group for the financial year ending 31 December 2019.
As the project will be carried out in phases, it is also not expected to have any material impact on the consolidated net tangible assets per share or earnings per share of the Group for the respective financial years.[the_ad id=”31605″]