If after due diligence the Company decides to complete the acquisition, Sino Clean Energy will control a 60% stake in Foshan Nan Hai, a producer and distributor of CWSF in China.
Founded in 2003, Foshan Nan Hai has an installed capacity of 1.2 million metric tons and reserved capacity of 1 million metric tons and is widely recognized as the largest producer of CWSF in China.
'We believe that Foshan Nan Hai is a significant producer of CWSF producer in China and that the local market it serves shows strong growth potential.
The Company believes that Sino Clean Energy is the third largest producer of coal-water slurry fuel ('CWSF') by sales in China, according to data provided in Frost & Sullivan's 2010 Chinese CWSF market report.
(Jamie won Best of Fair in Lambton county and a CWSF
honourable mention.) It is the special skill and expertise of these professionals that often inspires the students to persevere and overcome their difficulties.
The company said that the new CWSF facility commenced operations on 4 January 2011.
This new CWSF production facility expands Sino Clean Energy's total annual production capacity to 1,150,000 metric tons.
In addition, the company claimed to have signed supply agreements with four customers, including Yongchang Paper and Tongyi Group, to deliver a combined almost 200,000 MT of CWSF over the next 12 months.
The net proceeds from the offering are planned to be used by the company to expand its CWSF
production capacity at new and existing facilities throughout China, to pay the remainder of the purchase price under an agreement to purchase land use rights and a production factory in Dongguan, Guangdong Province and for working capital and general corporate purposes.
This new CWSF production facility is expected to begin operations in December 2010 with an annual output capacity of 300,000 metric tons, which is expected to expand to a total annual production capacity of 1,150,000 metric tons by December 2010.
Additionally, the company said it is targeting large CWSF customers in Guangdong, as the province is one of the most economically developed in China.