Shandong Huatai Paper to issue 100 mln shares

Published: 21 Sep 2009 16:18:48 PST

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Sep. 22, 2009 (China Knowledge) - Shandong Huatai Paper Co Ltd<600308>, a subsidiary of Huatai Group, plans to raise up to RMB 1.27 billion to fund its caustic soda project, sources reported.

Shandong Huatai Paper said in a statement filed with the Shanghai Stock Exchange today that it will issue up to 100 million shares through the platform provided by the bourse operator. Shares will be issued at RMB 12.66 apiece.

The proceeds from the share issuance will be used to construct an integrated pulp, paper and wood project and a caustic soda project with an annual production capacity of 500,000 tons, according to the statement.

Upon the completion of the projects, Shandong Huatai Paper will have the largest chlor-alkali plant in China.

Shandong Huatai Paper recorded RMB 56.83 million of net profit in the second quarter of this year, surging 157.32% from a quarter earlier.