January 5, 2007

China Sun to invest RMB 185 million in corn sweetener plant

Singapore-listed China Sun Bio-Chem Technology Group Company Ltd. (C86.SG) would invest RMB 185 million (US$23.7 million) in a corn sweetener plant in China's Jiangsu Province, the company said in a release late Thursday.

China Sun plans to finance the investment through internal resources and the proceeds from its convertible bond issue, the company said.

To implement the investment, China Sun would increase the registered capital from US$4 million to US$16 million in its operating subsidiary, Suzhou Gao Feng Fine Chemicals Company Limited.

The overall funding would be composed of RMB 150 million in capital expenditure and RMB 35 million in working capital.

The production plant eventually would reach an annual production capacity of 120,000 tonnes of corn sweetener.

In an effort to extend its product range, the company may make further investments in corn sweetener production, China Sun said.

China Sun specialises in modified starch and corn starch, and manufactures over 200 varieties of products.