China Starch (HKG:3838): Ann Output Uplift may Take Longer


China Starch Holdings (HKG:3838) has published an update on its expansion plan. As the group is yet to secure the grant of suitable new production site from the Shouguang Municipal Government and taking into account the time that would be required for completing the construction and development of the new production site, the expected timetable for increasing the annual production capacities of the group is likely to take longer than anticipated.

To facilitate the grant of new production site to the group in furtherance of the proposed expansion plan of the group, the group may have to relocate the whole of its existing production plants and facilities located at existing production site in Shouguang, Shandong Province, the PRC to the new production site as may be granted by the Shouguang Municipal Government. The proposed new production site of the group is expected to be remained in Shouguang with a site area of not less than 330,000 sqm and annual cornstarch and lysine production capacities of 450,000 tonnes and 55,000 tonnes respectively, which are the same those of the existing production site of the group in Shouguang.

Apart from that, further new production site may be granted and preferential policies may be offered to the group subject to final approval of the Shouguang Municipal Government.


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