China Metal Recycling Ltd. signed an agreement to acquire 99.68 percent interest in Jiangyin Port Container Co. at a consideration of RMB220,000,000 (US$32.2 million). The container company is a port services company located in one of the transportation and logistics hubs in China. Jiangyin provides port services, warehousing, stevedoring and transportation of goods at the Jiangyin port.
The acquisition will provide the CMR with an exclusive port to serve as a regional logistic and distribution hub supporting the company’s recycling bases in the Jiangsu region.
The company also announced that it has signed a cooperative agreement with major banks including Industrial and Commercial Bank of China Jiangyin Branch, Agricultural Bank of China Jiangyin Branch, China Construction Bank Wuxi Branch and Bank of Communications Jiangyin Branch to establish a credit line of securing credit for a maximum of RMB3,500,000,000 (US$512 million) to support business development.
Chun Chi-Wai, rounder, chairman and CEO of the group, says, "We are very glad to have made another important milestone. We believe the acquisition is one of our strategic assets and will strengthen the position of CMR in Eastern China for advancing business development in the region. As for the agreement with banks, it testifies to the confidence the banking sector has in us and our potential as an industry leader. We will continue to consolidate smaller industry players to facilitate to the sustainable development of the scrap metal recycling industry."