China-based HaiKe Chemical Group is putting £19 million into a joint venture supplying oil and gas products domestically.
China-based HaiKe Chemical Group is putting £19 million into a joint venture supplying oil and gas products domestically.
Headquartered in Donying City, Shandong Province, and quoted on AIM, HaiKe will have 49 per cent of Donying Hi-Tech Ruilin Chemical Co, a £39 million venture that will produce and sell petrol, diesel oil, liquefied natural gas, asphalt and heavy oil, products for which demand in China currently outstrips supply. The company’s partners are oil and gas investment concern Xindu Group and infrastructure developer Jindayuan Real Estate.
The Ruilin joint venture, three miles from Donying Port, “an important economic hub”, is part of the Beijing government’s strategy of vertically integrating the People’s Republic’s petrochemical sector. Floated at 79.8p in 2007, HaiKe shares soon hit 203p before slumping to 18p in February and now trade at 31.5p, valuing the company at £72 million.
