China's Sinochem Equipment progresses asset restructuring

Qingdao, China – Chinese tire & rubber machinery major Sinochem Equipment Technology (Qingdao) Co. Ltd has progressed its asset restructuring plans with a recent approval from state-owned Assets Supervision and Administration Commission (SASAC).

In a 25 Feb Shanghai Stock Exchange (SSE) filing, the Sinochem subsidiary said the proposed asset restructuring and related fundraising had also been formally approved by SSE.

As previously announced by the Shanghai-listed company, the plan includes the issuance of shares to acquire 100% of Yiyang Rubber & Plastics Machinery Group Co. Ltd from China National Chemical Equipment Co. Ltd and 100% of Bluestar (Beijing) Chemical Machinery Co. Ltd from Beijing Bluestar Energy-Saving Investment Management Co. Ltd.

The to-be-acquired businesses are part of the broader Sinochem Group.

The transaction also includes a plan to raise supporting funds through a share issuance to no more than 35 qualified specific investors.

Sinochem Equipment disclosed its plans to acquire the two major machinery makers in July last year, adding that the deal will represent a “major asset restructuring” but not a change of controlling shareholder.

Yiyang Rubber Machinery, based in Hunan, is a long-established supplier of rubber processing machinery such as internal mixers, extrusion lines, and vulcanisation systems.

Beijing Chemical Machinery provides pressure vessels and turnkey solutions for chemical and energy industry clients.

Sinochem Equipment said at the time that the acquisition supports its strategy to strengthen its industrial core and scale its operations across critical segments.