Shenhuo Coal And Electricity to Construct 150,000-Ton Aluminum Strip facility

Shanghai. INTERFAX-CHINA - Henan Shenhuo Coal Industry and Electricity Power Co. Ltd. (Shenhuo Coal and Electricity), a Shenzhen-listed subsidiary of Henan Shenhuo Group, and  Shangqiu Shangdian Aluminum Industry (Shangdian Aluminum) agreed on Mondayto construct a 150,000-ton  aluminum strip facility in Shangqiu City of Henan Province, Shenhuo Coal and Electricity announced today. According to the agreement, the aluminum strip facility, designed to produce 100,000 tons of aluminum foil billet, 10,000 tons of aluminum strip for decoration purpose, 30,000 tons of PS base and 10,000 tons aluminum foil for air-conditioner manufacturing per year, requires a total investment of RMB 1.67 billion ($222.85 million) and will take three years to construct.

The two sides will form a joint venture, named Shangqiu Yangguang Aluminum Products Co. Ltd., with registered capital of RMB 200 million ($26.69 million), to undertake the construction.  Shenhuo Coal and Electricity plans to acquire a 60 percent stake in the joint venture for RMB 120 million  ($16 million), while Shangdian Aluminum will take the remaining 40 percent stake. Shenhuo Coal and Electricity also announced today that the company's net profit soared 104.15 percent year-on-year during the first nine months of 2007 to RMB 693.21 million ($92.5 million), due to the commissioning of its new coal selecting facility as well as the acquisition of aluminum assets. The company also forecast a year-on-year net profit surge of between 100 percent and 150 percent for 2007, as long as both the coal and aluminum markets remain stable.

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