Borshen Stock announced that the company has decided to jointly invest with Shandong Wanchangshun Environmental Protection Technology to establish a joint venture, which will then purchase the operating assets of Wanchangshun and its affiliated enterprises with cash to carry out anti-corrosion insulation pipe related business. The registered capital of the joint venture is 200 million yuan, of which Borshen Stock will contribute 140 million yuan in cash, holding a 70 percent stake, with the funds coming from self-raised capital. After establishment, the joint venture will purchase the operating assets in two cash installments. The appraised value of the assets in this purchase is 116 million yuan, and the transaction price is also 116 million yuan. Another production line will be appraised and purchased separately after renovation is completed. The partner Wanchangshun has long been engaged in the research, development, production, and sales of prefabricated directly buried insulation pipes and fittings, with a total of 63 authorized patents, and has long served clients such as Jinan Energy Group and Jinan Thermal Power Group. Borshen Stock stated that its current businesses, including diamond tools, coated abrasives, and rail transit equipment components, are all leaders in their respective niche markets, and there is an urgent need to build new growth poles through strategic investment. The anti-corrosion insulation pipe and other clean heating equipment sector targeted by this investment aligns with the national carbon peak and carbon neutrality strategy and the direction of urban underground pipeline network construction.
Bosun Tools Co LtdBorshen Stock plans to invest 140 million yuan in a joint venture to enter anti-corrosion insulation pipe business, expanding into a new growth area.
Wanchangshun will sell its operating assets to the joint venture for 116 million yuan, receiving cash and partnering with Borshen Stock.
