Sino Clean Energy, a leading producer and distributor of coal-water slurry fuel (“CWSF”) in China, yesterday announced it has signed a non-binding preliminary agreement to acquire Crown Energy Limited, which holds as its sole business a 60 percent stake in Foshan Nan Hai.
Foshan Nan Hai is widely recognized as the largest producer of CWSF in China. Foshan Nan Hai was founded in 2003 and has an installed capacity of 1.2 metric tons and reserved capacity of 1 million tons. The company is located in Foshan City, Guangdong Province, where the local government promotes CWSF for energy conservation and carbon emission reduction. Foshan Nan Hai supplies to the largest CWSF boiler in China.
Baowen Ren, Chairman and CEO of Sino Clean Energy stated, “We believe that Foshan Nan Hai is a significant producer of CWSF producer in China and that the local market it serves shows strong growth potential. The Company is fortunate to have the opportunity to consider the investment, which is in line with our business development strategy. Based on the results of our investigations, the Company’s production capacity in Guangdong Province could be strengthened if we elect to complete this acquisition.”
If after due diligence, Sino Clean Energy decides to complete the acquisition, it will control a 60 percent stake in Foshan Nan Hai.