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Shenghong Refinery receives CNY 5bn
Posted on Friday, 06 December 2019 14:20
Jiangsu Eastern Shenghong and Lianyungang Shenghong Refinery Industry are injecting CNY 5.00 billion (USD 709.45 million) into major refinery construction company Shenghong Refinery Liangyungang.
The capital increase and share expansion should accelerate the construction of a refinery and chemical project aimed at meeting demand in the province and surrounding areas.
While the development and reform commission signed off on the project in September 2018, it took a little longer for the ministry of ecology and environment to give it a green light, which came in December 2018.
Shenghong Liangyungang is working on the 320,000 barrel a day (16.00 million tonnes a year) crude unit and a 76,000 b/d naphtha reformer complex.
The refinery should complete and be put into operation in 2021 as one of the largest single-line capacity facilities in China.
Furthermore, the facility is expected to address the long-term dependence of China and Jiangsu Eastern Shenghong on the import of petrochemical building blocks.
This includes paraxylene, which is essential to the process of manufacturing polyethylene terephthalate plastic bottles and polyester fibre, among other things.
On completion of the cash injection, Shenghong Liangyungang's registered capital will increase to CNY 13.00 billion, of which Jiangsu Eastern Shenghong and Lianyungang Shenghong will hold an 80.9 and 19.1 per cent interest, respectively.
The Shenzhen stock exchange-listed petrochemical products and chemical fibres producer recently carried out a vertical integration by acquiring Jiangsu Honggang Petrochemical earlier this year to create a high-end textile industry chain.
Zephyr, the M&A database published by Bureau van Dijk, shows 37 capital increases by petroleum and coal products manufacturers and merchant wholesalers have been announced in 2019 to date.
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