Xinjiang International and Urumqi Petroleum form joint venture

Xinjiang International Industry Co. Ltd., which is headquartered in Urumqi, plans to set up a joint venture in China’s Xinjiang Uyghur Autonomous Region with Urumqi Petroleum Fuel, a company it indirectly controls. The new company, Xinjiang Zhuoyue Haorui New Energy, with a registered capital of CNY50 million (US$7.9 million) will be involved in the development and application of methanol gasoline, methanol diesel, biodiesel and biofuels. Xinjiang International Industry will invest CNY15 million (US$2.3 million) in the new subsidiary and obtain a 30% interest, while Urumqi Petroleum Fuel will invest CNY35 million (US$5.5 million) for a 70% stake. Xinjiang International Industry also intends to spend CNY100 million (US$15.8 million) to set up wholly controlled subsidiaries in Kyrgyzstan and Kazakhstan. The subsidiary, Central Asian Investment Trading, will be based in Almaty, Kazakhstan, and will have a registered capital of CNY1.5 million (US$238,401). According to the company, the investment will help to quickly develop its oil and gas investment and energy trading businesses and help to extend its petrochemical industry chain. Another subsidiary, Tokma Oil Refinery, will be established in Tokmak, Kyrgyzstan. It will have a registered capital of CNY10 million (US$1.5 million) and will have an annual capacity of 400,000 tons. According to the memorandum agreement signed with the mayor of Tokmak, total project investment is CNY151 million (US$23.9 million). The investment will help to guarantee the procurement of raw materials through the company’s international trading platform in Central Asia. Xinjiang International manufactures and distributes coal, coke and related products. In addition, it imports and exports coke, crude oil, refined oil, fuel oil, heavy oil, ethylene, other chemical raw materials, oil machinery, petrochemical products, steel, scrap aluminum, chemical fertilizers, cotton, textiles, newsprint, wood pulp, ephedra products, plastics, agricultural products, food products, building materials, light industry products and clothing products. The company also has import and export operations in various countries. (March 23, 2012)