Yangquan Coal Merges Sanwei Huabang      

On September 18th the Shanxi Provincial State-owned Assets Supervision and Administration Commission (S-SASA) announced that the whole assets of Shanxi Sanwei Huabang Group were merged into Yangquan Coal Industry (Group) Co., Ltd. (Yangquan Coal) at no cost. Thereafter Yangquan Coal became the majority of Shanxi Sanwei Group Co., Ltd. (Sanwei, SZ: 000755) that Shanxi Sanwei Huabang Group holds 27.79% stake. Yangquan Coal holds 58.34% stake in Shanxi Guoyang New Energy Co., Ltd. (Guoyang, SH: 600348). By this merge, Yangquan Coal extends its industrial chain to the chemical industry from coal, power generation, aluminum and building materials industries. .
   As the new chemical platform of Yangquan Coal, Sanwei mainly engages in the production of polyvinyl alcohol, 1,4-butanediol, PTMEG, tetrahydrofuran (THF), gamma butyrolactone, pentaerythritol and other chemicals. It posted the revenue of RMB1.346 billion and a net profit of 113.5 million in the first half of 2008, down 4.25% and 36.66% respectively. Guoyang, the coal to chemicals platform of Yangquan Coal, majored in coal business, recorded the total revenue of RMB6.6 billion and a net profit of RMB469.5 million in H1, up 33.68% and 74.77% respectively. The listed company is constructing a 400 000 t/a alumina project and plans to build methanol and chlor-alkali project.   
   Yangquan Coal is jointly controlled by S-SASA, China Cinda Asset Management Corporation and China Construction Bank.