In its response to queries from the Singapore stock exchange, China Sunsine Chemical Holdings Ltd. said it will invest up to 2.5 billion yuan for the acquisition and development of the land parcel that its Shandong Sunsine Chemical Co. Ltd. subsidiary agreed to acquire under a deal with the People's Government of Shanxian County in China.
The Singapore-listed chemicals company noted in a news release that 1.5 billion yuan of the allocated amount will be invested in property, plant and equipment, while the remaining 1.0 billion yuan is expected to be used as working capital.
The land at the center of the deal between the Chinese local government and Shandong Sunsine has a total land area of about 800 mu (approximately 534,000 square meters).
China Sunsine added that the property will be developed in phases over many years and that the timeline for the project will depend on factors including market conditions and customer demand.
When it announced the agreement for the site, China Sunsine noted that it will use internal resources to cover all cost related to the investment.
As of March 15, US$1 was equivalent to 6.71 yuan.