Wanwei to Expand PVA Business by Buying Assets     

Anhui Wanwei Updated High-Tech Material Industry Co., Ltd. (Wanwei, SH: 600063 ) announced on November 5th to buy a 100% stake in Guangxi Guangwei Chemical Co., Ltd. from Guangxi Vinylon Group Co., Ltd. for a consideration of RMB25 million.
   Guangxi Guangwei Chemical, located in Yizhou, Guangxi region, engages in the production and sales of polyvinyl alcohol (PVA), vinyl acetate, vinyl acetate-ethylene copolymer (VAE), with a capacity of 30 000 t/a PVA, 30 000 t/a VAE. The company's PVA facility has been halted since August 26th, 2008 due to a sudden accident. (CCR 2008 No.25)
   The audited total assets for Guangxi Guangwei Chemical were RMB366 million as of May 31st, 2009. The revenue was RMB53.3 million in the first five months of 2009, with a loss of RMB37 million.
   The acquisition will help Wanwei build biomass PVA production base in Guangxi using abundant sugarcane and cassava as raw material, reducing dependence on coal.  
   Wanwei intends to restore Guangxi Guangwei Chemical's PVA facility, making use of its own ethanol to ethylene process.
   Wanwei, based in Chaohu in Anhui province, devotes efforts in PVA family business, hybrid in chemicals, fibers and building materials.