Liaoning Fangda Group Industrial Co Ltd has recently inked financing cooperative deal with China Development Bank. As is stipulated in the agreement, CDB should offer CNY 8.8 billion to Fangda group and the two sides would extend a deeper cooperation in strategic plan scheming, M&A and reorganization, corporation bond issue, investment and financing plan designs etc.
Lioaning Fangda Group is a large sized corporation group with great diversities. Three listed companies under the group all boast great competitiveness Fangda Carbon New Material Technology Co Ltd is a supply base for carbon products and the sole nuclear graphite producer in China ranking the top in Asia and the third in the world. Fangda Special steel Technology Co Ltd is the largest domestic spring flat steel producing centre while Jinhua Chemical Engineering Technology Co Ltd has made great breakthrough in the research and development of new products like polyvinyl chloride, polyether etc. Therefore, the deal may enhance the technology and capacity as well as lower the cost for the group as well.
In addition, the whole competitiveness of the group may also by elevated by combining the industrial and financing advantages of two sides, especially when the bank reserve ratio has been risen in a row, capital tightening situations were exacerbated in the currency market.
It is learned that Fangda Special Steel has maintained its fine momentum with the Q1 earnings per tonne was placed at among top10 in the industry. The net profits and total revenues reached CNY 98.82 million and CNY 2.92 billion up by 56.9% and 1.74% respectively.
Mr Zhong Chongwu Board Chairman of Fangda Special Steel noted when he enfolded the company’s development strategy during 12th 5 year plan that it would stretch the industrial chains and advance the technology transformation to upgrade the competitiveness, make more researches in high value-added products to restructure the product mix and clarify its responsibility of energy conservation and emission reduction.
(Sourced from Securities Times)
