Longxing Chemical to Acquire Two Carbon Black Companies from CSRC (Singapore)

　　On July 16, 2024, Longxing Chemical Co., Ltd. announced that it has signed a Letter of Intent with Mr. Liu Jiangshan, a private individual, and CSRC (Singapore) PTE Ltd. regarding a potential equity transaction. According to the agreement, the parties have reached a preliminary cooperation intention for the acquisition of 100% equity in Zhongxiang (Anshan) Chemical Industry Co., Ltd. and Zhongxiang (Chongqing) Carbon Black Co., Ltd. Longxing Chemical and Mr. Liu Jiangshan plan to use their own funds to acquire these companies, with Longxing Chemical holding 55% of the equity and Mr. Liu holding the remaining 45%.

　　The acquisition involves the 100% equity of the two carbon black enterprises held by CSRC (Singapore), along with all associated rights, interests, and obligations. The final purchase price will be determined after further due diligence and negotiation. The payment method and payment date for the equity transaction will be finalized when the formal equity transfer agreement is signed. Currently, Longxing Chemical will conduct due diligence on the two target companies to assess their assets, liabilities, operational status, and legal risks. The sellers will cooperate with the due diligence process by providing necessary documents and information.

　　China Synthetic Rubber Corporation, a Taiwanese-funded enterprise, has entrusted its subsidiary, CSRC (Singapore) PTE Ltd., to invest in China. The company has established carbon black production bases in Ma'anshan, Anshan, and Chongqing. The equity transfer involves Zhongxiang (Anshan) Chemical Industry Co., Ltd. and Zhongxiang (Chongqing) Carbon Black Co., Ltd. Zhongxiang (Anshan) Chemical Industry Co., Ltd. was established in April 2001 with a registered capital of $14,985,000 and a capacity of 72,000 tons. Zhongxiang (Chongqing) Carbon Black Co., Ltd. was established in September 2010 with a registered capital of $4,610,000 and a capacity of 65,000 tons. China Synthetic Rubber Corporation, founded in 1973 in Taiwan by the renowned entrepreneur Ku Chen-fu, is an internationally recognized company utilizing patented technology from Continental Carbon.