Yuanxing Natural Alkali Strengthens New Energy Business     

Inner Mongolia Yuanxing Natural Alkali Co., Ltd. (Yuanxing Natural Alkali, SZ: 000683) announced on August 13th that the company intends to purchase an 11.24% interest in Inner Mongolia Sulige Natural Gas Chemical Co., Ltd. from Inner Mongolia Boyuan Holdings Co., Ltd., thereby Yuanxing Natural Alkali holding the 100% equity in Sulige Natural Gas Chemical to expand the natural gas chemical business.
    Yuanxing Natural Alkali will issue corporate bonds up to RMB500 million, of which RMB97.88 for acquiring the 11.24% equity in Sulige Natural Gas Chemical and up to RMB300 million for increasing the investment in the acquired company.
    Sulige Natural Gas Chemical, established in 2004, is engaged in the production and sales of natural gas based methanol and downstream products and silica gel. The audited total assets were RMB664.085 million as of 2007. Yuanxing Natural Alkali acquired the 88.76% equity in Sulige Natural Gas Chemical in November 2005. Sulige Natural Gas Chemical expanded the natural gas based methanol capacity to 180 000 t/a in March 2007. The project has already started wet commissioning today.
    "The deal will further increase the profit earning ability of Yuanxing Natural Alkali and also bring Sulige Natural Gas Chemical onto a track of sound development," analysts said.
    After trial production for more than half a year, the 400 000 t/a methanol unit and the 600 000 t/a methanol unit in Boyuan United Chemical Co., Ltd. that Yuanxing Natural Alkali holds a 66.2% equity both have started production and will become driving forces for the profit growing in the second half of 2008.
    Yuanxing Natural Alkali has defined new energy as its development orientation. The company signed an equity swatch agreement with its majority shareholder in May 2008. Yuanxing Natural Alkali will use the 48% equity in Xilinguole Sunite Alkali Co., Ltd. to change for the 15% equity in Inner Mongolia Boyuan United Chemical Co., Ltd. held by Inner Mongolia Boyuan Holdings. In this way Yuanxing Natural Alkali will hold the 66.2% equity in Inner Mongolia Boyuan United Chemical and 52% equity in Xilinguole Sunite Alkali Co., Ltd.