November 1 -- Guangdong Dongyangguang Aluminum (600673.SH) announced it plans to issue 150 million shares in a private placement at 9.87 yuan per share, reports Shanghai Securities News, citing the company announcement.

Dongyangguang Aluminum will use the funds to expand production facilities of anti-corrosion aluminum foil by 35 million square meters and the production line of high-pressure aluminum foil by 21 million square meters for total investment of 1.43 billion yuan. The company will use remaining funds to repay bank loans.

The Shaoguan-based firm supplies aluminum for the chemical and transportation industries. It products include aluminum foil, hydrophilic foil for air conditioners, capacitors, magnetic materials, and refined aluminum.

Dongyangguang Aluminum plans to construct 88 anti-corrosion aluminum foil production lines and expand annual aluminum foil production capacity by 35 million square meters. The move is expected to yield 1.12 billion yuan in extra revenue and net profit of 164 million yuan. It will also build 72 production lines for high-pressure technology aluminum foil to increase production capacity by 21 million square meters and generate revenue of RMB 1.47 billion yuan and net profit of 155 million yuan.

Dongyangguang Aluminum’s net profit was 248 million yuan in 2011 and 254 million yuan in the first three quarters of 2011.
 

Source:CapitalVue