Liansu buys factory from its chairman

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: January 18, 2013 11:29 am ET
Updated: January 18, 2013 11:33 am ET

Related to this story

Topics Construction, Polyethylene, PVC, Pipe/Profile/Tubing, China

YUNFU, CHINA -- China's largest plastics pipe maker, China Liansu Group Holdings Ltd., is spending 116 million Chinese yuan ($18.4 million) to buy a valve manufacturing and epoxy coating factory owned by the company's chairman, Wong Luen Hei.

Liansu said in a Jan. 15 filing to the Hong Kong Stock Exchange that it is buying the factory, in Yunfu, to help it expand its own capacity and meet increasing demand in the country's municipal pipe and residential construction markets.

In August, the company disclosed plans to add four more pipe-making factories in China, a significant expansion of its capacity.

The Yunfu factory, which is wholly owned by Wong, has more than 100 employees and makes about 800,000 sets of valves a year, including PVC and polyethylene soft seal gate valves, rubber check valves and hard seal epoxy coated valves, Liansu said in the filing.

The factory operates under the name Guangdong Liansu Value Co. Ltd. and was set up in 2006 with an investment of HK$100 million (US$12.9 million), the company said.

Liansu said in the stock filing that the terms of the sale were deemed fair following a review by an outside financial advisor, Investec Capital Asia Limited, and appraisals by an appraisal firm.

The company said Wong and two other executive directors on the Liansu board abstained from voting on the acquisition. They are Wong's wife and Liansu's CEO Zuo Manlun, who is Wong's brother-in-law.


Comments

Liansu buys factory from its chairman

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: January 18, 2013 11:29 am ET
Updated: January 18, 2013 11:33 am ET

Post Your Comments


Back to story


More stories

China's growth hits 24-year low

January 21, 2015 10:17 am ET

The world's second largest economy reported its 2014 gross domestic product growth at 7.4 percent, the lowest since 1990. The plastics industry...    More

Image

Emerging markets beckon China's toymakers

January 21, 2015 2:08 pm ET

Manufacturers at the recent Hong Kong Toys & Game show say plummeting oil prices have had negligible effect on toy makers' bottom lines.    More

Image

New Vinyl Building Council leader out to build on grassroots efforts

January 20, 2015 12:54 pm ET

As the new executive director of the Vinyl Building Council, Kevin Koonce will oversee advocacy for the most-used plastic in building and...    More

Image

Plastics help create net-zero energy home

January 20, 2015 3:31 pm ET

The New American Home — a working lab of best construction practices since 1984 — has reached its greenest goal yet with plastic pushing...    More

Image

Public utilities appeal latest decision in JM Eagle case

January 20, 2015 1:08 pm ET

The law firm representing public utilities in a False Claims Act lawsuit against J-M Manufacturing Co. — now called JM Eagle — plans to ap...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events