Shandong Helon Increases Investment in Xinjiang Helon      

Shandong Helon Co., Ltd. (SZ: 000677) announced on October 6th that it and Xinnong Development Co., Ltd. (SH: 600359) will jointly increase an input of RMB168 million in Xinjiang Helon Chemical Fiber Co., Ltd. Shandong Helon plans to subscribe RMB92.4 million and Xinnong Development will subscribe RMB75.6 million. Upon completion of the investment increase, Shandong Helon will hold 55% equity in Xinjiang Helon, the remaining 45% equity for Xinnong Development.
    Xinjiang Helon engages in the production and sales of viscose fibers, with a viscose staple fiber capacity of 80 000 t/a. The design on the first-phase 40 000 t/a viscose staple fiber project was already completed and the civil construction on it was started in 2007. (CCR2007 No. 26) It is scheduled to come on stream in 2008. Construction on the second-phase 40 000 t/a viscose staple fiber project will be started after the completion of the first phase and it is expected to start up at the end of 2009.
   The input increase this time is to make fully use of the advantages in low-price and high-quality raw material resources in Xinjiang region, reduce the Shandong Helon's production cost, enhance competitiveness and raise profit-making ability.