Haike Chemical Group
HaiKe Chemical Group Ltd is a petrochemical, speciality chemical and biochemical business based in Shandong province, China. The Group’s principal products are diesel and other oil-related products produced through oil refining operations, as well as speciality chemical and biochemical products.
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HaiKe Chemical Group enters Joint Venture with Xindu Group and Jindayuan
Petrochemical business HaiKe Chemical (AIM: HAIK), jumped in early deals after the company announced that it had entered into a joint venture with Xindu Group Company and Jindayuan Real Estate Company.
Xindu Group specialises in the investment of petroleum technological development, petroleum and gas engineering and urban gas pipelines.
Jindayuan is a China based infrastructure developer specialising in infrastructure construction of urban gas and natural gas pipelines and facilities management.
HaiKe Chemical will hold a 49% stake in the new joint venture company with the remaining 51% is held between the two joint venture partners. HaiKe Chemical will provide RMB 196 million, funded entirely by cash, to the joint venture, will the joint venture partners will provide RMB 204 million.
“The Joint Venture is part of the Chinese Central Government's plan to vertically integrate petrochemical businesses to encourage further growth and efficiency in the sector,” the company stated.
The JV company will produce and sell gasoline, diesel oil, liquefied gas, asphalt and heavy oil domestically, where demand currently outweighs supply.
Mr. Yang Xiaohong, Executive Chairman of HaiKe Chemical, said:
“The establishment of this joint venture is an exciting opportunity for HaiKe to grow its petrochemical business and take advantage of the demand for our products in China. Xindu and Jindayuan have excellent reputations, extensive expertise and are ideal partners for us to accelerate our expansion plans and provide us with a strong foundation for further growth.”
