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

Molder goes to auction block

October 17, 2014 12:17 pm ET

An Illinois custom injection molding operation will be auctioned off after its owner decided to close the business.    More

Image

Humanoid robot provides inspection service with a smile

October 17, 2014 6:00 am ET

Everyone knows robots can improve production and quality. But no one says they can't show a little personality while they're working.    More

Image

Little sports figures get big backing

October 17, 2014 11:55 am ET

OYO Sportstoys Inc. is gearing up to produce and sell more plastic mini-figures after gaining $11 million in equity financing from a group led by...    More

Image

Hasco gets into augmented reality

October 17, 2014 6:00 am ET

Mold makers may be used to seeing cores and pins on the exhibition stand of a supplier — but not augmented reality that looks like it comes...    More

Image

Plastikon expanding in Kentucky

October 17, 2014 11:24 am ET

Automotive supplier Plastikon Industries Inc. plans to more than double the size of its production facility in Leitchfield, Ky.    More

Market Reports

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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