Shandong Luxi Chemical to invest RMB 4.85 bln in 5 projects

May 18, 2009 (China Knowledge) - Shandong Luxi Chemical Co Ltd<000830> obtained approval from the board of directors to invest around RMB 4.85 billion in five chemicals projects in the next three years, sources reported.

The company will launch five key projects that will output 200,000 tons of organic silicon, 120,000 tons of methane chloride, 160,000 tons of melamine, 300,000 tons of urea, 60,000 tons of methanol and 200,000 tons of methylamine per year.

When the projects are completed, the company's annual operating revenue is expected to reach RMB 15 billion and Shandong Luxi Chemical is likely to be the largest company listed on the Shenzhen Stock Exchange in the chemical fertilizers and pesticides sector.

Shandong Luxi Chemical said it has enough funds for the planned investments. The company will need to increase its comprehensive credit line from RMB 2.8 billion in 2008 to RMB 5 billion. Moreover, the company has issued RMB 900 million in short-term financing bills.

The chemical company, based in Liaocheng, Shandong Province, will develop its sub-industry chain in fine chemical projects. Meanwhile, the company hopes to form a main industry chain of coal chemical products, salt chemical products and silicon products.