Chifeng Fulong Sells Fulong Chemical        

Chifeng Fulong Thermal Power Co., Ltd. (Chifeng Fulong, SZ: 000426) announced on February 4th that Chifeng Fulong Nonmetal Material High-Tech Park Co., Ltd., whose 90% equity is held by Chifeng Fulong, will sell the 94.74% equity in Chifeng Fulong Chemical Co., Ltd., with a consideration of RMB50.6 million.
   Chifeng Fulong Chemical, established in February 2002, has a registered capital of RMB38.0 million. It is a small chemical enterprise with high energy consumption, high pollution and low efficiency. It produces 40 000 tons of ammonia and 100 000 tons of ammonium bicarbonate a year, as well as others including compound fertilizers, soda ash, methanol, formaldehyde and oxalic acid. The annual production is approximately RMB50.0 million. Due to the drastic price rise of raw material coal and the higher freight cost, the company suffered a huge loss.
   The spin - off is in line with Chifeng Fulong's strategy of strengthening main business, helping consolidate its positions in the thermal power business, according to the announcement.