Hainan Rubber announced Dec. 20 that the controlling shareholder will inject rubber-related assets in it.
Hainan State Farm Investment Holdings Group Co., Ltd., the controlling shareholder of Hainan Rubber, has promised to inject all the operating rubber-related assets in Hainan Rubber within five years.
Hainan Rubber explained the details of the commitment.
Hainan State Farm Corp. issued the Letter of Commitment to Avoid Horizontal Competition to Hainan Rubber on Aug. 20, 2010.
According to the letter, because of inappropriate planting environment, some of the subunits of Hainan State Farm Corp. will keep the rubber plantation.
But the latex and timber produced from the rubber plantation should be purchased and processed by Hainan Rubber and its subunits.
Hainan State Farm Corp. planned to spend three years to deal with the rubber plantation assets involved in horizontal competition.
In addition, the farms that own rubber plantation assets were allocated to Hainan State Farm Bureau.
In Oct. 2013, Hainan Rubber decided after verification that there was no associated relationship between it and Hainan State Farm Bureau.
In Dec. 2015, Hainan State Farm Bureau merged with Hainan State Farm Group and became Hainan State Farm Investment Holdings Group.
The rubber plantation assets used to be owned by the farms of Hainan State Farm Bureau were reallocated to Hainan State Farm Investment Holdings Group.
