Shenma Industrial Co., Ltd. announced Dec. 13 to cooperate with two companies to establish a joint-venture.
The three, Shenma Industrial, Fujian Shenyuan New Material Co., Ltd., and Henan Shenma Catalysis Technology Co., Ltd., plan to establish Fujian Shenyuan Shenma New Material Co., Ltd., with the registered capital to be 352 million yuan.
Fujian Shenyuan will invest 236 million yuan in terms of currency and land-use right, accounting for 67% of the registered capital;
Shenma Industrial will invest 102 million yuan in terms of currency, accounting for 29% of the registered capital;
And Henan Shenma will invest 14.08 million yuan in terms of currency, accounting for 4%.
The joint venture plans to invest 880 million yuan to construct a cyclohexanone production project with annual capacity of 200,000 tons, with an expected sales revenue of 1.83 billion yuan.
According to an insider with Shenma Industrial, the joint venture is established to meet the demand for expanding the firm’s nylon business.
