(Yicai Global) Sept. 11 -- Headquartered in Hebei, China, the pipeline manufacturer Cangzhou Mingzhu Plastic Co. [SHE:002108] will invest nearly USD50 million to expand its polyethylene pipelines production.
Wuhu Mingzhu Plastic Co., the company's wholly-owned subsidiary, signed an investment agreement with Xinwu Economic Development Zone in Anhui today. The company will expand its polyethylene gas and water-supply pipelines production in the development zone, said a statement from Cangzhou Mingzhu.
The company's USD50 million investment will be utilized for purchasing land, machinery equipment and construction facilities. The project will be constructed in two phases, and the first one is expected to be completed and put into operation by June 2018.
At present, the company's production capacity in polyethylene gas and water-supply pipelines is not adequate enough to meet the market demand. Cangzhou Mingzhu said that the implementation of the project will expand the company's production scale and improve market shares.
The public information shows, Cangzhou Mingzhu, which has grown into one of the biggest communication pipelines and gas and water-supply plastic pipelines providers, has established production bases in Dezhou in Shandong province, Wuhu in Anhui province and Rongchang in Chongqing successively.