Dongyue Group Company Limited

active

Based in Zibo, Shandong Province, China, the Dongyue group of companies (Dongyue Group) commenced initial operations in 1987 with the production of small quantities of hydrogen fluoride anhydrous (AHF) and has since become one of the largest fluorine chemicals and polymers producers in the world. The Dongyue Group consists of three operating companies, namely, Shandong Dongyue Chemical Limited (Dongyue Chemicals), Shandong Dongyue Polymer Materials Co., Ltd (Dongyue Polymers), and Shandong Dongyue Fluorine-Silicon Material Co., Ltd (Dongyue F-S). Dongyue also holds 80% of the Dongyue-Jinfeng Co., Ltd. (Dongyue-Jinfeng) in Chifeng, Inner Mongolia Autonomous Region. The main products of Dongyue Group include various fluorine-based refrigerants with a production capacity of 120,000 tpy, PolyTetraFluoroEthylene (PTFE) with a production capacity of 20,000 tpy, and chloride methane products with a production capacity of 120,000 tpy. The group has an integrated value chain in the fluorine chemical industry, from intermediates to finished products. Dongyue Group will also hold majority shares of three small fluorite mines (through its JV, Dongyue-Jinfeng) in Chifeng, Inner Mongolia Autonomous Region, China. In 2005, the group ranked amongst the top 100 chemicals enterprises in China, according to a survey published by the Chinese Petroleum & Chemistry Industry Association. The proposed project has two main components: - undertake a corporate restructuring project (Corporate Restructuring) by setting up an offshore holding company (Holding Company), which will own majority of the Dongyue Group and target a listing on the domestic or offshore stock market, and - implement various capital expenditures including setting up a greenfield organic silicon project, expanding its existing R134a refrigerant production capacity; and implementing a clean development mechanism (CDM) project (collectively Capital Expenditure Program).