On October 11, Shandong Yanggu Huatai Chemical Co., Ltd. decided to establish a wholly-owned subsidiary in the USA, Huatai Chemical (USA) Corporation (tentative name), with its own funds. With the registered capital of USD 2 Million, the new subsidiary locates in Wilmington, Delaware.

It is known from Yanggu Huatai that the purposes for establishing the wholly-owned subsidiary in the USA are to facilitate the product distribution in North America, satisfy the development need of the company, enhance the market competition of its products and strengthen the market development.

According to 2015 Annual Report, Yanggu Huatai achieved operation revenue of 860 Million Yuan in 2015, including 311 Million Yuan in Chinese market, accounting for 36.2%. The USA and other districts in North America are the second largest export market for Yanggu Huatai now. This investment is conducive to market development for new products and promoting the sale of Yanggu Huatai’s products in the USA and other districts in North America.

According to relevant regulations, the establishment of overseas enterprise shall be examined and approved by relevant authorities and apply for registration.