Longxing Chemical Stock Co., Ltd. and Xinjiang Jinyuxin New Materials Co., Ltd. agreed to establish a joint venture with overall investment of 100 million yuan in solid waste recycling.
Over the past few years, gross profit of Longxing Chemical dropped all the way down because of overcapacity in the carbon black sector and fierce competition. Although the supply, production and sales in 2015 kept stable, its main business still suffered severe losses due to high costs and low sales prices.
The board of Longxing Chemical believed that the carbon black sector is to stay sluggish in the short term and the business environment won’t turn better soon, seeking for other lucrative businesses is in line with the interests of shareholders.
The company says the assets to be purchased by the joint venture own advanced technology and equipment in the field of construction waste resources recycling. As environmental protection requests increase along with urban development, such technology has great market potential and will be profitable.
