(Yicai Global) Nov. 13 -- Fiber engineering company Beijing Sanlian Hope Shin-Gosen Technical Service Co. [SHE:300384] plans to use its subsidiary Sanlian Material Science Sarl to take an 80-percent stake in Switzerland-based Polymetrix Holding AG, a world-leading engineering service provider in the polymer processing and recycling field.

The subsidiary signed a CHF20.56-million (USD20.62-million) share purchase agreement with Polymetrix's shareholder Buhler Holding AG, the Chinese parent company said in a statement on Nov. 11. The buyer will pay it dues in cash and take on the target firm's debts to Buhler for a total of CHF9.29 million.

The parties agreed that the debts would be repaid over a three-year period beginning from the settlement date, with no interest for the first two years. In the third year, the rate will be the London interbank rate plus 200 basis points, the statement said.

Polymetrix has fostered successful project partnerships with a number of leading Chinese firms in the polymer industry. Its business covers a number of countries around the globe.

The buyer's parent company, which carries out engineering services for chinlon (China nylon), hopes to extend its business scope to cover polyethylene terephthalate, commonly known under the brand name Dacron, after the transaction. The move will enhance the company's capacity to offer services for different synthetic materials, the statement added.

The listed firm will also be able to explore the international market through the new channels and resources it acquires in the deal.