Sinopec Group has decided to transfer its Lianyungang Soda Ash Factory in Lianyungang, China“s eastern Jiangsu Province, to the local government free of charge, in order to avoid over CNY 4 billion i…
Sinopec Group has decided to transfer its Lianyungang Soda Ash Factory in Lianyungang, China“s eastern Jiangsu Province, to the local government free of charge, in order to avoid over CNY 4 billion in relocation expenses. Lianyungang Soda Ash Factory, which has assets of CNY 1.7 billion, is a wholly controlled unit of Sinopec Group. It is one of the three largest soda factories in China with annual soda output of one million tons and annual profit exceeding CNY 100 million. The removal of the factory from the urban area is due to new environmental protection requirements. Together with expenses for capacity expansion and technology upgrades, the cost will be over CNY 4 billion. Sinopec Group has also decided to hand over its non-core businesses to the local government free of charge. The deal is still awaiting government approval.