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HONG KONG, Jan 11, 2010 - (ACN Newswire) - China Metal Recycling (Holdings) Limited ("CMR" or "the Group")(HKEx: 0773), with Mr. Zhu Minyang, Secretary of CPC Jiangjin Municipal Committee as witness, signed an agreement to acquire 99.68% interest in Jiangyin Port Container Company at a consideration of RMB220,000,000 and also a cooperative agreement with major banks including Industrial and Commercial Bank of China Jiangyin Branch, Agricultural Bank of China Jiangyin Branch, China Construction Bank Wuxi Branch and Bank of Communications Jiangyin Branch securing credit for a maximum of RMB3,500,000,000 ("RMB3.5 billion Bank Credit") to support business development on 29 December 2009. The Group is also pleased to announce that the results of the independent review of CMR's internal control conducted by Baker Tilly Hong Kong Business Services Limited ("Baker Tilly"), an independent professional consultancy firm, were sound and positive.
Jiangyin is the one of the transportation and logistics center in the Yangzi River region. Jiangyin Container is a port services company established in 2001 and is principally engaged in the business of the provision of port services, including warehousing, stevedoring and transportation of goods at the Jiangyin Port. The port under Jiangyin Container is a national type 1 pier, has a shore line of 570 meters, water depth of -15 meter, with an operational area of approximately 170,000 square meters and an annual handling capacity of approximately 5 million tons. The acquisition will provide the Group with an exclusive port to serve as a regional logistic and distribution hub supporting the Group's recycling bases in the Jiangsu region. This substantially improves the Company's operational efficiency, competitiveness in the region and lowers the transportation costs. Together with the RMB3.5 billion Bank Credit, the Group's leading positions in the Eastern China can be strengthened.
Mr. Chun Chi-wai, Founder, Chairman and Chief Executive Officer of the Group, said, "We are very glad to have made another important milestone. We believe the acquisition is one of our strategic assets and will strengthen the position of CMR in Eastern China for advancing business development in the region. As for the agreement with banks, it testifies to the confidence the banking sector has in us and our potential as an industry leader. We will continue to consolidate smaller industry players to facilitate to the sustainable development of the scrap metal recycling industry."
In order to further enhance the Group's corporate governance, the Group engaged Baker Tilly on 24 November 2009 to perform an independent review of the internal control mechanisms and procedures maintained by the Company. The results of the independent review by Baker Tilly indicated that the Company's internal control mechanisms and procedures were sound, and no irregularities or material errors were detected during the independent review.
Mr. Chun added, "Looking forward, the Group believes the best of timing, geographical conditions and talents are to work in our favour. With the country pushing forward with building a recycling economy and conserving energy and reducing carbon emissions, presence in the huge Eastern China market and the support of the authority and major banks in the PRC, the Group is confident of capturing the market potentials."
Contact:
Strategic Financial Relations Limited
Heidi So
Tel: (852) 2864 4826 / 9461 7088
heidi.so@sprg.com.hk
Cindy Lung
Tel: (852) 2864 4867 / 9282 4640
cindy.lung@sprg.com.hk
Shirly Chan
Tel: (852) 2864 4883 / 9490 5449
shirly.chan@sprg.com.hk
Topic: Press release summary
Source: China Metal Recycling Holdings Limited
Sectors: Metals & Mining, Daily Finance, Energy, Alternatives
https://www.acnnewswire.com
From the Asia Corporate News Network
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