Luxi Chemical’s subsidiary stops production and relocates

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According to a report from the newspaper (reporter: Shi Chao), on the 6th, Luxi Chemical (000830) issued a statement stating that, in line with the overall progress of the project to move industries out of cities and into industrial parks, the company plans to shut down and relocate its wholly-owned subsidiary, Shandong Liaocheng Luxi Chemical Second Fertilizer Co., Ltd. According to the records, the Second Fertilizer Company is located at No. 96 Ejiao Street, Dong’e County, covering an area of 340,000 square meters; it is designated as industrial land. At present, the local authorities **have not yet determined specific preferential policies. It is reported that the main product of the Second Fertilizer Company is urea, which is produced using traditional methods, giving it a low cost advantage. Moreover, the current price of urea is around 1,100 yuan per ton, the lowest level in 5 years. As a result of this shutdown and relocation, the plant’s production capacity of 500,000 tons of urea will also be eliminated. However, the announcement states that the company will take this opportunity to further advance its transformation and upgrading, properly handle the transition related to the project of moving out of cities and into industrial parks, and determine the best implementation plan.