Sanju Environmental Increases Investment in Rizhao Zhonghong

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Sanyu Environmental Increases Investment in Rizhao Zhonghong – Author/Source: Sinochem New Network, Date: 2020-06-24, Clicks: 83. On June 19, Beijing Sanyu Environmental New Materials Co., Ltd. issued a statement indicating that, in order to make substantive progress with the restructuring of Rizhao Zhonghong Petrochemical Co., Ltd. and to accelerate the development of the 400,000 tons per year bioenergy project, the company signed relevant agreements with the state-owned assets agency in Juxian County, Shandong Province. Under these agreements, the company will convert its 385 million yuan in accounts receivable from Rizhao Zhonghong into 84.62% of its equity in that company. 　　The announcement states that Sanju Environmental Protection intends to collaborate with Ju County Jinmao Asset Management Co., Ltd. (referred to as Ju County Jinmao) to jointly invest in the renovation and operation of a bioenergy project. Using Rizhao Zhonghong Petrochemical Co., Ltd. (referred to as Rizhao Zhonghong) as the core platform, and leveraging Sanju Environmental Protection’s patented technology and experience in producing biofuels through its MCT suspended-bed hydrogenation process, the two parties will build upon Rizhao Zhonghong’s existing 1 million tons per year delayed coking complex to develop this bioenergy project. 　　It is understood that this bioenergy project has recently been approved by the Shandong Provincial Development and Reform Commission, which has issued its approval comments; meanwhile, the environmental impact assessment for the project was made publicly available for the first time recently. According to the announcement, Sanju Environmental Protection will acquire 30% of the shares in Rizhao Zhonghong held by Juxian Jinmao at a price of 0 yuan. It will also inject an additional 355 million yuan into Rizhao Zhonghong. As a result of these share transfers and capital injections, Rizhao Zhonghong’s registered capital will increase to 455 million yuan. The company will hold approximately 84.62% of Rizhao Zhonghong’s shares, while Juxian Jinmao will hold around 15.38% of those shares. 　　Sanyu Environmental Protection stated that the company will first make an investment in Rizhao Zhonghong in order to accelerate the progress of the bioenergy project, and will subsequently continue to discuss investment matters with other potential investors in accordance with the provisions of the cooperation framework agreement. Following the signing of this agreement, the company will pursue further in-depth cooperation with Juxian Jinmao in the field of biomass energy. All parties will make full use of and leverage their respective core resource advantages to advance the construction of facilities for producing green biomass energy, thereby facilitating the company’s development and transformation toward the green energy industry and enhancing its profitability.