(June 8, 2017 – Hong Kong) Realord Group Holdings Limited (“Realord” or the “Company,” together with its subsidiaries collectively known as the “Group,” stock code: 1196.HK) is pleased to announce that Top Eagle International Trading Limited (“Top Eagle”) , an indirect 60%-owned subsidiary of the Company, has entered in an investment agreement with Wuzhou Import Renewable Resources Processing Park Management Committee (the “Committee”). The cooperation carried out a recycling and production of aluminum ingots project in Wuzhou Import Renewable Resources Processing Park (the "Park") with a target annual production capacity of 100,000 tonnes. The total investment amount is approximately RMB 350 million. The project will further enhance the Company's recycling business in renewable resources, and improve the renewable aluminum business planning in the park.
To solve the dilemma with the current renewable aluminum industry in the Park, the Committee has been seeking investment precisely to complement full-chain industry, and entered an investment agreement with Top Eagle. The cooperation introduced a recycling and production project of aluminum ingots with a target annual production capacity of 100,000 tonnes into the park. The project is belonged to a midstream project of renewable aluminum industry chain. It mainly engages in recycling and production of aluminum ingots, and plays an important role in enhancing and connecting the upstream and downstream of renewable aluminum industry chain in the park. The project is beneficial to the closed-cycle of circular economy within the park, and accelerates the development of renewable resources industry.
According to the agreement, Top Eagle will build a processing plant for the recycling and production of aluminum ingots in Wuzhou Import Renewable Resources Processing Park located in Wuzhou City, Guangxi Province. The target annual production capacity of the project will reach 100,000 tonnes to be ramped up in two phases. The total investment amount is approximately RMB350 million, and not limited to acquisitions of the site, construction of the processing plant and office premises, plant and machinery acquisitions. The investment and development will divided into Phase One Site and Phase Two Site with a total area of 129 mu. The phase one investment will be approximately RMB250 million with a site area of approximately 80 mu (equivalent to approximately 53,360 square meters), while the phase two will be approximately RMB100 million with a site area of approximately 49 mu (equivalent to approximately 32,683 square meters). The term of the land use rights of the Site is 50 years.
Top Eagle International Trading Limited, an indirect 60%-owned subsidiary of the Company, is mainly engaged in recycling, dismantling and sales of scrap materials, such as copper, aluminum, iron and plastic. The new processing plant to be established under the Investment Agreement introduces more complicated melting process for the production of aluminum ingots. The new processing plant would elevate its existing scrap material business with a more value-added model and higher profit margin, and it also provides a favourable environment for the Group to further develop its business.
About Top Eagle International Trading Limited
Top Eagle International Trading Limited engaged in recycling dismantling and sales of scrap materials such as copper, aluminum, iron, and plastic.
About Wuzhou Import Renewable Resources Processing Park
Wuzhou Import Renewable Resources Processing Park located in Wuzhou City, Guangxi Province, one of the demonstration cities of circular economy in the PRC. The park is a demonstration park of national "closed-circle management" strategy in national import renewable resources, and also known as "urban mining" demonstration base, which has been approved by the National Development and Reform Commission and the Ministry of Finance since 2011. It is mainly engaged in the recycling, processing and utilization of renewable resources as the key industrial park of Guangxi Zhuang Autonomous Region, the pilot industrial park of circular economy, and the core of the development of renewable resources industry in Guangxi. In October 2015, the park was identified as “Guangxi Industrial Park for Integration of Informatization and Industrialization in 2015”.