Honghe Company Joins Yanhua Group's Target: To Build the Largest Salt Chemical Industry Base in Western China

On November 11, the enthusiastic applause of Zigong Honghe Chemical Group Co., Ltd. successfully joined the signing ceremony of China Haohua Chemical Group Corporation. Both parties stated that they will jointly build the largest salt chemical industry base in western China.
Yanhua Group is a state-owned large-scale enterprise established with the approval of the State Council in 1992 and has a total assets of RMB 12 billion. Among the 49 wholly-owned subsidiaries, there are 18 state-level research institutes. The research and development scope covers coal chemical industry, petrochemical industry, natural gas chemical industry, rubber processing, chemical equipment, national defense chemical industry and chemical information. In 2004, it achieved sales revenue of 7 billion yuan and realized profits and taxes of 500 million yuan. Honghua Group is an important fine chemical base in the western part of China. It has the largest synthetic production of baking soda industrial equipment in Asia. The existing total assets of 2.4 billion yuan, the economic growth in the past three years are above 30%. In 2004, it achieved sales revenue of 450 million yuan and profit of more than 4300 million yuan.
During the “Eleventh Five-Year Plan” period, Honghua Group's combined alkali capacity has been expanded from 450,000 tons/year to 1 million tons/year, from 5,000 tons/year to 50,000 tons/year, and from caustic soda from 150,000 tons/year. Increased to 250,000 tons/year.
In another development, after the transfer of state-owned assets and management relations, all the state-owned property rights of Honghua Group will be transferred to Shuhua Group without any change. The state-owned nature of Honghua Group will remain unchanged, and it will continue to retain its independent legal person status. Business, independent accounting, self-financing, taxation, debt and debt ownership, and employee national ownership are all unchanged. Both sides put forward relevant safeguard measures on the legal rights and interests of more than 10,000 employees of Hongxing Group who are employed and retirees.