9th Apr 2015 12:10
LONDON (Alliance News) - China Chaintek United Co Ltd Thursday said it has paid CNY15.8 million, the final payment, for the acquisition of a transit warehouse first revealed in early December.
The payment follows the the transfer of the land use rights and completion of "all other administrative procedures relating to the purchase".
"The newly acquired facility, located near the Chaintek head office in Fujian Province and close to a number of factories belonging to Chaintek's major customers, will help to resolve the capacity issue at the current transit warehouse whilst also allowing Chaintek in the longer term to capture an anticipated increase in demand from the market," the company said.
"Since operations commenced at the new transit warehouse facility in January, the group has successfully migrated some 45% of current logistics services turnover from direct handling solely by our transport agents to short term utilisation of the new transit facility. The transit facility enables Chaintek to use its fleet of 15 smaller trucks for daytime goods movements prior to utilising the larger lorries of our transport agents which are subject to increasing stringent daytime travel restrictions," the company said.
"The new transit warehouse facility is now operating at an estimated 60% capacity. Approximately 30% logistics turnover continues to be processed via Chaintek's original head office transit warehouse with the balance handled by our transport agents from manufacturing warehouses outside the restricted zone," the company said.
China Chaintek United shares were down 6.7% at 28.00 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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