Kingfa Sci & Tech Intends to Acquire Special Engineering Plastics Business      

Kingfa Sci & Tech Co., Ltd. (SH: 600143) announced on October 6th that the company plans to invest up to RMB300 million in purchasing all equity in Mianyang East Special Engineering Plastics Co., Ltd.
   Mianyang East Special Engineering Plastics is located in Mianyang of Sichuan province. It was established in August 2003 and has a registered capital of RMB60 million. Its major products are anticorrosive materials for buried steel pipelines (including HDPE special materials for 3PE corrosion-proof pipelines, mainly sold to the anticorrosion plants under PetroChina, Sinopec and CNOOC. HDPE special materials for corrosion-proof pipelines have passed the inspection conducted by CNPC Anticorrosion and Insulation Product Quality Monitoring and Inspection Center and have been successfully used in the urban natural gas pipeline in Chengdu city, the Hangzhou-Ningbo natural gas pipeline and the Yuxi-Kunming steel works ore sand transmission pipeline. Some special engineering plastics have also been used in the second west-east gas transmission pipeline, the Central Asia gas transmission pipeline and the Kazakhstan-China gas transmission pipeline. The design capacity of HDPE anticorrosive special materials in the company can reach 32 000 t/a, holding a leading position in China. By August 2008, the company accomplished a sales revenue of RMB315 million and a net profit of RMB20.57 million.
   Kingfa Sci & Tech plans to acquire several enterprises having advantage complementation with technologies and products of the company so as to achieve rapid expansion and further increase its market shares and consolidate its leading position in the modified plastic sector.
   The head office of the company is located in Tianhe District of Guangzhou, Guangdong province, focusing on the R & D, production and sales of high-performance modified plastics.