Jonjee Plans Expansion


Jonjee Hitech Industrial and Commercial Holding (600872) plans to solve its capacity bottleneck problems by investing 1.49 billion yuan into Guangdong Meiweixian Season, and terminate an expansion project to produce 263 million ampere hours of ni-mh batteries due to low levels of government subsidies which cannot cover costs, reports China Securities Journal, citing a company filing.

The investment could add annual capacity of 468,800 tons of various types of seasonings, and is expected to generate annual net profit of more than 270 million yuan on sales revenue of 3.35 billion yuan after 2020.

Meiweixian, which has a registered capital of 200 million yuan, is a wholly-controlled subsidiary of Jonjee Hitech Industrial and Commercial. It produces soy sauce, chicken powder, edible oil and related products. It produced more than 260,000 tons of various products per year, and generated net profit of 67.85 million yuan in 2010.

Meiweixian is forecast to reach full capacity by 2014 and thus it planned the above expansion project.

In 2009, subsidiary Zhonshan Senglan High Tech had already invested a total of 16 million yuan on research and production facilities, accounting for 1.22 percent of the total investment in the battery project.

According to the company, neither auto makers nor component suppliers have a strong desire to produce hybrid vehicles

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