ChemChina to list KraussMaffei on Shanghai Stock Exchange


Chinese company China National Chemical Corporation (ChemChina) is seeking to list its subsidiary KraussMaffei, a supplier of machinery and systems for producing and processing plastics and rubber, on a stock exchange in China.

To this end, KraussMaffei will become a subsidiary of Qingdao Tianhua Institute of Chemistry Engineering Co. Ltd, which is listed on the Shanghai stock exchange and is a subsidiary of ChemChina, by way of injecting its equity interest into an existing listed company under ChemChina.

In addition, it is planned to integrate amongst others three sites for the production of tyres and rubber facilities from ChemChina into the listed entity. The transaction is subject to approvals by relevant bodies and regulators.

“KraussMaffei’s business would make up about 85% of the listed company,” said Frank Stieler, CEO of KraussMaffei. KraussMaffei would continue to expand the international business from Germany as well as drive the Chinese business locally.

Through the planned access to the Chinese capital market, KraussMaffei says it will be able to accelerate its growth in the mid-term. The company already increased its revenue for fiscal 2016 by 5% to EUR1.27 billion and is heading to cross the mark of EUR1.3 billion in 2017. Since April 2016 KraussMaffei has been under majority ownership of the leading Chinese chemicals company ChemChina.

The planned transaction is the next step in the development of KraussMaffei. In 2016 the company solidified its leading technological market position in the plastics and rubber industries and with the change in ownership laid the foundation to enhance its profitable growth.

“Through the planned transaction we are receiving access to the capital market. Through new financial resources we have the opportunity to continue to develop our company and accelerate our planned growth,” said Stieler. In the current fiscal year 350 new jobs are expected to be created. In August 2017 KraussMaffei globally already exceeded the 5,000-employee mark.

The company headquarters of KraussMaffei remain in Munich, Germany.

ChemChina remains actual controller of KraussMaffei and will continue to support the future growth of the company.

“We have always believed in the growth potential of the company. Through a future listing on the Shanghai stock exchange, the perception of KraussMaffei will significantly increase in the Chinese market. Chinese investors appreciate German industrial workmanship as well as management competency,” said Jianxin Ren, Chairman of ChemChina.

Qingdao Tianhua Institute of Chemistry Engineering Co. Ltd. is currently listed on the Shanghai stock exchange under the ticker symbol 600579.SS. Trading of Qingdao Tianhua Institute of Chemistry Engineering Co. Ltd. shares has been halted for the past five months in accordance with Chinese Regulation.

The transaction is subject to approvals by relevant bodies and regulators in China. The request for approvals will be reviewed by relevant bodies and regulators and are expected to be received over the next coming months.


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