Miracll Chemicals proposes to invest RMB 3.5 billion in a new polyurethane materials industrial park project

On June 17, 2021, Miracll Chemicals Co., Ltd. released the Announcement on Foreign Investment and Related Transactions, stating that Miracll Chemicals Co., Ltd. intends to invest in the construction of a polyurethane new materials industrial park to further promote the layout of the polyurethane new materials industry chain, with the project focusing on the production of new polyurethane materials and moving upstream and downstream to form a full industrial chain polyurethane new materials production base. Miracll Chemicals Co.

In order to promote the construction of the project and achieve win-win cooperation and development, Miracll Chemicals Co., Ltd. intends to sign a strategic cooperation agreement with Henan Energy Chemical Group Co. The initial registered capital of Miracll Technology is RMB 500 million, of which the company contributes RMB 275 million in cash, with a 55% shareholding; Hebi Coal Chemical contributes RMB 75 million in cash, with a 15% shareholding; and Ruihua contributes RMB 150 million in cash, with a 30% shareholding. The shareholding ratio is 30%.

The first phase of the project plans to build 100,000 tons of special thermoplastic polyurethane elastomer and upstream and downstream products. The project is located in Baoshan Economic and Technological Development Zone of Hebi City, and the project site is about 895 mu (subject to the final survey and boundary determination)

The total investment of the project is about 3.5 billion yuan. 500 million yuan will be contributed by all shareholders of Miracll Technology in cash for the initial construction of the project, and the subsequent investment of the project will be solved through capital increase by the original shareholders, project profit and financing, etc. The ways of financing include but not limited to equity financing, debt financing, etc.

Miracll Chemicals said in the announcement that by investing in the construction of polyurethane new material industrial park project, the company will extend upstream of the polyurethane industry chain. By developing upstream products, on the one hand, it can realize the self-supply of core raw materials of special TPU, thus reducing the production cost and facilitating the further development and marketing of special TPU products; on the other hand, it extends the company's product line. The upstream products to be developed and produced by the project are widely used in other fields other than TPU, and such upstream products have high technical threshold and strong profitability, which will bring new profit growth points for the company.