20th Apr 2009 09:13
HaiKe Chemical Group Ltd announces Joint Venture with Xindu Group and Jindayuan
HaiKe Chemical Group Ltd ("HaiKe" or the "Company") the AIM quoted (AIM : HAIK) petrochemical and speciality chemical business based in China is pleased to announce that it has entered into a joint venture with Xindu Group Company Ltd., an investment company focused on the oil and gas sector, and Jindayuan Real Estate Company Ltd., an oil and gas infrastructure developer. HaiKe's principal goal from the joint venture is to increase the production and sale of its petrochemical products.
HaiKe has taken a 49% stake in the new joint venture company, Dongying Hi-Tech Ruilin Chemical Co., Ltd (the "Joint Venture" or "Ruilin"), and the remaining 51% is held between the two joint venture partners, both of which are well established regional companies. The value of the initial investment into the joint venture will be RMB 400 million of which HaiKe will provide RMB 196 million, funded entirely by cash. The Joint Venture has not yet commenced trading.
The board of Ruilin comprises five members of which three directors are designated by HaiKe and the other two by each of the joint venture partners.
The Joint Venture is part of the Chinese Central Government's plan to vertically integrate petrochemical businesses to encourage further growth and efficiency in the sector. Ruilin will produce and sell gasoline, diesel oil, liquefied gas, asphalt and heavy oil domestically, where demand currently outweighs supply. Located three miles from Dongying Port, an important economic hub, the Joint Venture has easy access to cheap and efficient transportation for its feedstock and finished products.
Mr. Yang Xiaohong, Executive Chairman, said:
"The establishment of this joint venture is an exciting opportunity for HaiKe to grow its petrochemical business and take advantage of the demand for our products in China. Xindu and Jindayuan have excellent reputations, extensive expertise and are ideal partners for us to accelerate our expansion plans and provide us with a strong foundation for further growth."
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HaiKe |
Nick Su, Chief Financial Officer |
+86 (546) 8289 173 +86 137 8060 5789 |
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Hanson Westhouse |
Tim Metcalfe / Christine Zhang / Martin Davison |
+44 (0) 20 7601 6100 |
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Cardew Group |
Rupert Pittman / Shan Willenbrock / Catherine Maitland |
+44 (0) 20 7930 0777 |
Notes to Editors
HaiKe Chemical Group
HaiKe Chemical Group Ltd is a petrochemical, speciality chemical and biochemical business based in Shandong province, China. The Group's principal products are diesel and other oil-related products produced through oil refining operations, as well as speciality chemical and biochemical products. The Company currently has an annual oil refining capacity of 1.8 million tons and a speciality chemicals and bio-chemicals production capacity of 545 thousand tons. HaiKe was admitted to AIM, a market operated by the London Stock Exchange on 14 February 2007. At the time, the Company successfully raised US$17 million (after expenses) to facilitate its growth.
Xindu Group
Xindu Group is a holding company focused on financial investments of oil and gas related activities in China. The Group specialises in the investment of petroleum technological development, petroleum and gas engineering and urban gas pipelines.
Jindayuan
Jindayuan is a China based infrastructure developer specialising in infrastructure construction of urban gas and natural gas pipelines and facilities management.
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