HaiKe Chemical Group, a petrochemical and specialty chemical business based in China, said that it plans to seek admission to trading on AIM and raise up to $20 million through an institutional placing of new ordinary shares.
HaiKe's principal products are gasoline and diesel oil produced through oil refining operations, as well as specialty chemical and biochemical products.
The Group currently has annual oil refining capacity of 7.54 million barrels and a specialty chemicals and biochemical's production capacity of 100 thousand tonnes, it said.
The management team has a proven track record in the industry and enhanced the performance of the Group's subsidiaries by increasing the year on year sales for the Group from $85 million for the year ended Dec. 31, 2003 to $201 million for the year ended Dec. 31, 2005. The Group generated profit before tax of $7.7 million for the year ended Dec. 31, 2005.
HaiKe intends to continue with its strategy to be a substantial producer of petrochemical as well as specialty chemical products. The Group intends to expand its production capacity and increase sales by a sequence of carefully planned investment projects in both the petrochemical and specialty chemical sectors.
Following admission, the Group intends to invest more than half the proceeds of the placing in its refining business with an emphasis on the installation of heavy oil catalytic cracking equipment. This will enable the group to process a wider slate of crude oil in addition to being able to manufacture greater quantities of higher value, lighter products such as light fuel oil, diesel and liquefied gas.
The directors anticipate that Hi-Tech Chemical's refining facilities will have an additional annual production capacity of 800,000 tonnes by early 2008, in addition to the current capacity of 1 million tones (7.54 million barrels).
The group intends to strengthen its leading position in the specialty chemical market by adopting new processing technologies to improve production efficiency and reduce production costs. In addition to the ongoing expansion in production of DMC and propylene glycol, the Group initiated production of isopropyl alcohol in November 2005 and intends to invest a proportion of the proceeds from the placing in order to continue this expansion in 2007, the company said.
This is anticipated to generate the Group an additional 30,000 metric tonnes of isopropyl alcohol per annum by 2009, in addition to the current capacity of 30,000 tonnes, HaiKe said.
Source:未知