L & L International Holdings Inc. is a U.S.-based company operating coal businesses in China. The company today announced an agreement with Hon Shen Coal Company in China, in which L&L will acquire a 93 percent stake in Hon Shen’s coking facilities, as well as a 28 percent interest in Hon Shen’s coal washing facilities.
The coal washing facilities have aggregate coal washing capacity of 300,000 tons, 210,000 tons from the coal washing plant and an existing 90,000-ton plant. Hon Shen’s coking facilities have a combined annual production capacity of 150,000 tons.
L&L expects these facilities to add roughly $18 million in additional revenue to its books within one year, using $150 per ton of coking coal as a basis.
Dickson Lee, chairman and CEO of L&L, said the acquisition of Hon Shen’s facilities supports L&L’s expansion efforts to meet its end-point of efficiently serving the energy demand in China.
“These latest acquisitions are a continuance of our planned expansions for fiscal year 2010. We are excited to expand our relationship with Hon Shen as we work to improve production, operational efficiency, and environmental and safety standards at the Hon Shen facilities. The planned acquisitions will further our goal of becoming a vertically integrated energy company serving China’s high demand for energy and coal,” Lee stated in the press release.
The purchases come with an $8.18 million price tag that L&L will pay with a combination of cash and shares of the Company’s common stock. The company said the acquisition was complete October 23, 2009.