TIDMGTS

RNS Number : 9249A

GTS Chemical Holdings PLC

30 December 2014

30 December 2014

GTS Chemical Holdings plc

(The "Company" or "GTS")

Purchase of Land

The Directors of GTS are pleased to announce that the Company has entered into an agreement to acquire the land use right for land adjacent to the Company's current operations in order to expand production capacity.

Highlights

   --      51,333 square meters (c.5.1 hectares or c.77 mu) land use right acquired; 
   --      The land is designated for industrial usage; 
   --      Land use right granted for a period of 50 years; 
   --      Construction of production facilities is expected to commence in Q1 2015; 
   --      Total cost to the Company for the land use right of RMB 19,250,000 (approximately GBP2.0m);

-- As part of the purchase, the Company has agreed with the local government to invest at least a further RMB 30 million in buildings and equipment, such investment to commence prior to 1 March 2015 and to be completed by 28 February 2018;

-- The increased production area will enable the company to expand significantly its production of Ammonium sulfite and lubricant oils.

The land use right acquired is for less area than highlighted in the Company's Admission Document as the Company has evolved its construction plans to provide for a more capital efficient expansion plan. The Company anticipates that the additional production capacity, when brought on stream, will be sufficient to meet the Company's near term needs.

Mr. Cheng Liu, Chief Executive Officer of GTS Chemical Holdings plc, said: "We have delivered the acquisition of the land use rights on time and on budget We are now set fair for the next stage of our expansion which will enable us to increase significantly our production capacity to meet expected future demand for our products"

Enquiries:

 
 GTS 
  Mr Roy Su, CFO                               Tel: +86 159 5935 8899 
 SP Angel Corporate Finance LLP              Tel: +44 (0)20 3470 0470 
  Nominated Adviser and Broker 
  David Facey / Stuart Gledhill / Liz Yong

About GTS Chemical Holdings plc

GTS was admitted to AIM on 1 August 2014. GTS is a Jersey holding company whose sole operating subsidiary Shandong Tiantai Steel-Plastic Co., Ltd ("Shandong Tiantai"), is the largest Chinese manufacturer of ammonium sulfite and the second largest producer of ammonium bisulfite in China. GTS benefits from access to lower cost raw materials through the use of low concentration waste products from nearby industry as well as proximity to key customers which is of particular benefit due to the degradable nature of ammonium sulfite. The Group's activities also include blending and distribution of lubricating oils and trading of recarburizer.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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