Existing production plants shut down the production of St sub star chemical transformation

 Existing production plants shut down the production of St sub star chemical transformation

Yaxing chemical (600319. SH) received the notice on relocation and shutdown of Hanting production plant of Weifang Yaxing Chemical Co., Ltd. issued by the office of Weifang Municipal Peoples Government on September 2, 2019, in which the companys production plant was required to strictly implement the timing requirements of shutdown before October 31, 2019. The logic of relocation is that Yaxing chemical production plant is located in the central city, the products are dangerous chemicals, the surrounding shops are dense and there are many residents. Weifang Municipal Peoples government decided to move and shut down the companys production plant east of Beihai Road and north of Minzhu street in Hanting district.

On November 1, yasing chemical disclosed that as of October 31, 2019, the companys existing production plant had been completely shut down. The company said that at present, the evaluation of the relevant assets of the existing production plant area is still in progress, and will actively implement the relevant compensation and resettlement policies for the shutdown and relocation with the relevant departments of Weifang Municipal government. After the relevant compensation and resettlement policies are clear, the company will timely perform the obligation of information disclosure.

It is reported that Yaxing chemical production plant will be moved to Changyi Xiaying Industrial Park under the jurisdiction of Weifang City. The industrial park is a chemical park approved by Shandong provincial government. The company is going through the preliminary approval procedures for the construction of the new plant area together with relevant units and carrying out various preparatory work. The company will first implement the 50000 T / a CPE plant project in the new plant area and actively promote it according to the actual needs Construction of other projects.

It should be noted that due to the complete shutdown of the companys production plant, Asiatic chemical is expected to be unable to fully resume production in the next three months. According to article 13.4.1 (2) of the Listing Rules of Shanghai Stock Exchange, if the production and operation activities are seriously affected and it is expected that they will not return to normal within three months, Shanghai Stock Exchange will give other risk warnings to its shares. According to Yaxing chemical, the shutdown of the production plant causes the triggering of the above provisions, so it applies to Shanghai stock exchange for the implementation of other risk warnings. The companys shares will implement other risk warnings from November 4, and the stock abbreviation will be changed from Yaxing chemical to St Yaxing, and the trading will be suspended for one day on November 1.

After all, the relocation work is not a trivial matter. In the announcement on November 1, Asiatic chemical made a risk warning, saying that if the construction progress of the first phase of 50000 T / a CPE plant project is not as expected, it may increase the risk of high-quality customer loss, and please pay attention to the relevant risks. At the same time, if relevant compensation and resettlement policies are not clear with relevant government departments before the end of 2019, or the amount of the above compensation and resettlement policies cannot cover the impairment loss of relevant assets, the company may suffer losses in 2019.

Data shows that Yaxing chemicals main business is the research, development, production and sales of caustic soda, PVC, chlorinated polyethylene and extended chemical products, with a net profit of 3.1075 million yuan in 2018 and 19.5401 million yuan in the first three quarters of 2019.

Source: editor in charge of interface news: Yang bin_nf4368