Wuhu Conch Profiles and Science to launch JV in Chengdu

Sep. 22, 2009 (China Knowledge) - Wuhu Conch Profiles and Science Co Ltd<000619>, a plastics company based in Anhui Province, has signed an agreement with a 95%-owned subsidiary based in Yingde, Guangdong Province, to jointly set up a joint venture in Dayi County, Chengdu, Sichuan Province, according to a statement released by the Shenzhen-listed enterprise.

Wuhu Conch Profiles and Science will contribute RMB 90 million to the JV's registered capital to hold a 90% stake. The JV will be in charge of sales and distribution in Sichuan Province, Yunnan Province, Guizhou Province, Xi'an and Chongqing.

The JV will be responsible for a two-phase, RMB 500-million project. In the first phase, which will cost RMB 300 million and be completed next year, the JV will build a plant that can produce 40,000 tons of building materials annually and will build the infrastructure for another plant. At the end of the second phase, the entire project will be able to produce 80,000 tons of building materials per year.

The building materials will include sheets, tubes and pipes as well as fittings for doors and windows and other plastic products.

The company said that in Chengdu, polyvinyl chloride, a major raw material for producing plastic, is abundant.