10th Jul 2008 07:00
10 July 2008
HaiKe Chemical Group Limited
Expansion of Caustic Soda Production Facility Fully Operational
HaiKe Chemical Group Ltd ("HaiKe" or the "Company"), the AIM quoted (AIM: HAIK) petrochemical, speciality chemical and biochemical business based in China, is pleased to announce that the expansion of its caustic soda production facility is now complete and became fully operational on 7 July 2008.
The caustic soda production facility of Shandong Hi-Tech Shengli Electrochemical Co., Ltd ("Hi-Tech Shengli"), the speciality chemical manufacturing business and subsidiary of HaiKe, has successfully grown its production capacity from 55,000 tonnes to 100,000 tonnes since September 2007.
This expansion, constructed by using funds from existing cash and debt facilities, will increase the production capacity of Hi-Tech Shengli by 82%, enabling HaiKe to meet the high demand for caustic soda, which is commonly used for production in textile, paper making and other light manufacturing industries. The Board expects that the significant increase in production capacity will enhance HaiKe's overall sales revenue and net profit, and increase the proportion of the Company's speciality chemical sales. The total investment on the project amounts to RMB 80 million.
Mr. Xiaohong Yang, the Chairman of the Company, made the following statement:
"The successful expansion of the caustic soda production facility is a significant step forward for HaiKe. The expansion is in line with our strategy of developing, and aggressively growing, our speciality chemical business. We expect the facility to help counteract some of the adverse affects the current high global crude oil price is having on the petrochemical side of the business and boost the Company's profitability.
"This is a clear demonstration of our ability to deliver on our growth plan, and we are confident that we are in a strong position to continue developing and expanding our speciality chemical business, which shall further contribute to improved revenues and profit. "
For further information please contact:
|
HaiKe |
Johnson Lau, Chief Finance Officer |
+86 (0) 546 8289173 +852 37520631 |
|
Evolution Securities Limited (Nominated adviser) |
Stuart Andrews / Tim Worlledge |
+44 (0) 20 7071 4300 |
|
Evolution Securities China Limited (Financial adviser and broker) |
Barry Saint / Esther Lee |
+44 (0) 20 7220 4850 |
|
Cardew Group |
Shan Shan Willenbrock / Emma Consett |
+44 (0) 20 7930 0777 |
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