TORONTO — Royal Group Technologies Ltd., formerly Royal Plastics Group Ltd., said China National Real Estate Development Group has agreed to join its joint venture to make modular plastic housing systems in China.
China National is the real estate development and construction agency of China's government and has built about 20 percent of China's residential housing in the past 14 years, Royal said in an April 3 news release. It will own 10 percent of the housing venture while Royal and Shanghai Land Corp. will hold 54 percent and 36 percent, respectively.
Wayda, a subsidiary of China Disabled Persons Federation, was slated to hold 10 percent of the joint venture when Royal originally announced the project in early 1996. Officials were unavailable to comment on the change in ownership.
Toronto-based Royal said the venture's 150,000-square-foot production plant to make housing components is nearing completion in the Songjiang Industrial Zone. Royal initially targeted a fall 1996 startup.
In other news, Royal revealed terms March 31 for the previously announced merger of its Royal Ecoproducts Ltd. recycling subsidiary with Biron Bay Resources Ltd.
Royal Group said it will have a 74.3 percent equity interest in the merged company and a voting interest not exceeding 80 percent. Biron Bay shareholders will vote April 30 on the reverse takeover.
The merged company will be called Royal Ecoproducts Ltd. and Biron Bay's mining assets will be a separate division. Vic DeZen, chairman of Biron Bay, Royal Ecoproducts and Royal Group, said the new company will have better opportunities for financing and growth.
Royal Ecoproducts recycles post-industrial and post-consumer polyolefins and other plastics and compression molds them in Battle Creek, Mich., into building products and materials-handling systems such as pallets. It has C$7.9 million (US$5.7 million) in property, plant and equipment and working capital of C$11.5 million (US$8.3 million). Royal Group bought a majority interest in Ecopal Technologies Inc. last summer and renamed it Royal Ecoproducts.
Officials did not disclose the ownership structure of Biron Bay or describe its mining interests. Biron Bay is headquartered in Toronto. The company's shares are listed on the Alberta Stock Exchange.