(Yicai Global) Aug. 25 -- Guangdong Xiongsu Technology Group Co. [SHE:300599], a plastic conduits firm, plans to invest USD22.5 million to set up a Hainan subsidiary for multiple businesses including developing high-performance pipes, manufacturing marine farming equipment and building modernized agricultural bases.
The subsidiary will be established in Yunlong Industrial Park, Haikou National High-tech Industrial Development Zone in southern Hainan Province, said a statement from Xiongsu Technology Group. Out of the planned USD22.5 million-investment budget, USD3 million is equity fund and remaining USD19.5 million comes from the company's non-public offering in early 2017. The fund was originally intended for investment in a pipeline project in Jiangxi.
"The company's products have entered the Hainan market for nearly 20 years," Xiongsu Technology Group said, adding that "it has completed the regional market layout. Hainan's favorable geographical location could help us reduce operating costs and sharpen the competitive edges in the market."
Xiongsu Technology Group is mainly engaged in R&D and production of environment-friendly and high-performance plastic pipes, including drainage pipes, communication pipes and power cables, is one of China's leading large-scale plastic pipe manufacturers.