On July 17, Satellite Petrochemical disclosed the non-public offering plan that the company intends to issue non-public shares to 10 specific targets that meet the requirements of the China Securities Regulatory Commission. The total amount of the non-public fundraising will not exceed RMB3 billion.

According to the announcement, the fund raised will be used for Lianyungang Petrochemical Co’s construction of the 1.35-million-ton polyethylene (PE) and 260 kt acrylonitrile (ACN) plant. Located in Lianyungang Petrochemical Industry Base, the project will have a total investment of RMB33.5 billion and is designed to mainly produce monoethylene glycol (MEG), high density polyethylene (HDPE), linear low density PE (LLDPE), ethylene oxide and ACN. 

Upon the completion of the project, Satellite Petrochemical will walk on two legs by extending its C3 industrial chain to C2 industrial chain, which will help promote the company's industrial upgrading and enhance its sustainable profitability, sources from the company said.