Cangzhou Dahua New Project Construction &Nbsp; Phase I Project Investment Reached 1 Billion

Cangzhou Dahua yesterday held its first provisional shareholders' meeting in 2010. It mainly deliberated on the motion to continue to authorize the board of directors to provide loan guarantees to TDI company and to amend the counter guarantee agreement.

According to the announcement of Dahua in Cangzhou, the newly built 100 thousand ton TDI project is divided into two phases. First, the construction of a 70 thousand ton TDI will be extended to 100 thousand tons.

The item company will still use Swedish International Chemical Technology.

Related personnel told reporters that the first phase of the project started construction at the end of last year, and is scheduled to be put into operation in 2012.

This project will mark the pformation of a company from a urea producing enterprise to a TDI manufacturer. It is expected that by 2012, the TDI capacity of the company will reach 180 thousand tons, and is expected to become the largest TDI producer in China.

Cangzhou Dahua passed the motion on providing loan guarantee to TDI company and signing anti guarantee agreement in 2001. The company has provided short-term loan guarantee for Cangzhou Dahua TDI limited liability company (TDI company) for a long time.

According to reports, the total investment of the first phase project of the 100 thousand ton TDI project is 1 billion 40 million yuan, and the equity fund is 312 million yuan, which is raised by the company itself, and the rest applies for bank loans.

At present, in order to reduce loan risks and build new project funds, TDI has applied to Cangzhou Dahua to provide part of its medium and long-term loan guarantee.

After the adoption of the motion to continue to authorize the board of directors to provide loan guarantees to the TDI company and to amend the counter guarantee agreement, the Cangzhou Dahua continued to provide TDI company with a loan guarantee of not more than fifty percent of the company's latest audited net assets from three years from May 26, 2010.