China Fiberglass to invest in subsidiary

China Fiberglass Co Ltd said its board has agreed to put USD 37.87 million into subsidiary Jushi Group Co. to maintain its stake at 59.9%.
Jushi Group Co. will see its registered capital rise to USD…

China Fiberglass Co Ltd said its board has agreed to put USD 37.87 million into subsidiary Jushi Group Co. to maintain its stake at 59.9%. Jushi Group Co. will see its registered capital rise to USD 110.15 million from USD 46.95 million after the capital-raising exercise. China Fiberglass said that the new capital will be used to fund two of the unit“s fiberglass production projects. The two projects, both of which will start operations in 2006, are expected to generate CNY 700 million in revenue and CNY 150 million in net profit for Jushi Group per annum. Jushi Group posted total revenue of CNY 997.92 million and net profit of CNY 141. 24 million in 2004. No comparative figures were given. (USD 1 = CNY 8.3)