Dandong Chemical Fibre Set For Restructuring


 Dandong Chemical Fibre (000498), a producer of viscose staple fibers and viscose filaments, said controlling shareholder Xiamen Yongtongchang Group signed an agreement to transfer a 19.63 percent stake in the company to Shandong Hi-Speed Investment Holding, reports Shanghai Securities News, citing a company fling.

Shandong Hi-Speed Investment Holding will thereafter inject assets related to bridge construction, including a 100 percent stake in Shandong Luqiao Group, into Dandong Chemical Fibre.

Having suffered three straight years of losses, stock trading had been suspended since May 2008. A year after the suspension, the company announced a restructuring plan by which it will inject one billion yuan worth of high-quality assets via a private placement.

At the end of 2009, Xiamen Yongtongchang Group bought 86.53 million shares of Dandong Chemical Fibre for 17.30 million yuan, becoming the largest shareholder of the latter. 

Xiamen Yongtongchang Group said it will inject real estate assets into Dandong Chemical Fibre, a plan which failed due to the property curbs. 

Dandong Chemical Fibre incurred a loss of 1.41 million yuan during the first nine months of 2011. It obtained a government subsidy of 2.7 million yuan in December.


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