Web Exclusive

Legend to invest $2.7b in coal chemical industry

By Ren Jie (chinadaily.com.cn)
Updated: 2010-09-14 16:08

Legend Holdings Ltd has signed an agreement with Zaozhuang, eastern China's Shandong province, to invest 18 billion yuan in building a chemicals production facility there, the Securities Times reported Tuesday.

Summer Davos 2010 in Tianjin Related readings: Lenovo dreams of innovation  Labor costs no sweat for Lenovo Lenovo posts $54.9m profit Lenovo plans plants in inland to reduce costs

The chemical industry, especially the coal chemical industry, will be the key investment fields for Legend, the report said, citing Liu Chuanzhi, chairman of the company.

This is another large project after Legend cooperated with Enn Group and China Oceanwide Holdings Group in 2007 to build a chemical project in the province's Wenshang county, the newspaper said.

The 18 billion yuan will be invested in two stages over the next five years. First will be 7 to 8 billion yuan to develop an integrated coal chemical production chain, which is expected to bring revenues up to 10 billon yuan by 2013. Then the other 10 billon yuan will be invested for expanding production capacity and developing fine chemicals and new materials industries.

The two parties will set up a joint venture as soon as possible to implement the agreement, according to the report.