(Yicai Global) March 7 -- China Harzone Industry Co., provider of emergency traffic engineering equipment which serves China's top nuclear corporations, will pay CNY216 million (USD 34.1 million) in exchange for an asset injection from its controlling shareholder to develop business in nuclear emergency equipment industry.

The listed company plans to acquire 51 percent of stake in SXD Nuclear Emergency Equipment Co., the target company, with its own funds to make the latter become its holding subsidiary, said a statement from the Hubei-based emergency equipment and technology developer today.

The target company is the asset of Shaanxi Diesel Engine Heavy Industry Co., a wholly-owned subsidiary of China Shipbuilding Industry Corporation which is a shareholder of the listed company. Therefore, this transaction constitutes a connected transaction, the statement emphasized.

The company will expand its business in nuclear emergency safety through the transaction, it said. Besides the existing military and civilian emergency traffic engineering equipment, the firm will introduce new design and manufacture of nuclear emergency equipment to help establish a leading position in the field, it added.

Relevant products of the target company have broken the monopoly in technology and supply by foreign countries after many years of hard work, and the company's products have basically replaced the imported nuclear emergency units, it said. The company's customers are large nuclear power enterprises and their subordinate units, including China General Nuclear Power Corporation and China National Nuclear Corporation.