Shandong Yanggu Huatai Chemical Co., Ltd. decided to raise no less than 1.2 Billion Yuan through private placement of stock for the use of removal and expansion to enlarge product capacity and increase product category.

The fundraising is mainly used in 3 fields. Firstly, about 339 Million Yuan will be invested in high-performance rubber chemicals production program to build high-performance insoluble sulfur with an annual output of 20,000 tons (in two phases), high-performance rubber accelerator M with an annual output of 15,000 tons and high-performance rubber accelerator NS with an annual output of 10,000 tons. Secondly, about 586 Million Yuan will be invested in rubber chemicals removal and upgrading & rebuilding project with an annual output of 32,000 tons. After the factory is removed to the new site in Economic Development Zone, the old equipment will be replaced and the factory will achieve DCS control on all equipment, adopt more cleaning technology to expand the production scale of part of the original rubber chemicals and launch some new products. This is to start in December 2016 and make test runs in December 2018. Thirdly, about 250 Million

Yuan will be used for supplement of circulating fund. When the non-public fundraising is available, it will provide the company with necessary fund guarantee for its sustainable development, which contributes to facilitating the industry scale and performance level of the company, providing operation fund guarantee for the R & D and production of new products and expansion of business market, reducing the demand for circulating fund due to rapid growth of business and optimizing the capital structure.