Sanlux Co., Ltd. decided to purchase stakes in two enterprises with its own fund of 162.5 million yuan.
The targets include a 49.72% stake in Xishuangbanna Lubo Rubber Co., Ltd. and a 52.94% in Changxing Huamai Investment Management Partnership.
After the purchases, a 92.22% stake in Xishuangbanna Lubo Rubber will belong to Sanlux, becoming a controlling subsidiary of the latter, and Changxing Huamai Investment Management Partnership will be a wholly-owned subsidiary of Sanlux.
Natural rubber and compound rubber are primary raw materials of Sanlux, rubber cost takes up about 30% to 40% of the producer’s raw material costs, and it is vulnerable to rubber price fluctuation.
Sanlux said the purchases help it obtain stable, quality natural rubber supply channels, offset negative impact generated by rubber price fluctuation, complete industrial chain deployment, and increase profitability.
Xishuangbanna Lubo Rubber’s main businesses include rubber tree planting, natural rubber processing and trade. It owns rubber tree forest and rubber processing plant in Laos, and it is a major natural rubber supplier of Sanlux.
