06 June 2005 02:43 [Source: ICIS news]
SHANGHAI (CNI)--China’s Sinopec has merged two of its subsidiaries, Nanjing Chemical Industrial Co (NCIC) and Nanjing Chemical Plant (NCP), a NCP source told CNI on Monday.
The merger was carried out to enhance the competitivess of both Nanjing-based companies, the source said. NCIC is a fertiliser company while Nanjing Chemical Plant (NCP) produces a total of 450,000 tonne/year of rubber chemicals, chlor-alkali products as well as organic intermediates. Both companies are Sinopec's oldest subsidiaries.
The new company will assume the name of NCIC.
Sinopec will inject Rmb600m ($72.5m/Euro59m) into the new NCIC which will, in turn, spend Rmb400m in new investments for its coal-based chemicals, benzene derivatives and chlor-alkali products.
The source said operations of the two companies would continue as usual and the Nanjing government had requested for NCP's plant facilities to be relocated to NCIC's site in Dachang district. Both companies are located on the opposite banks of the Yangtze River.
One of the projects involved relocating NCP’s 60,000 tonne/year chlor-alkali plant to NCIC’s site and increase the capacity to 100,000 tonne/year by end-2005.
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