YC GROUP 炎洲集團

Vertical Integration of Tape Business: YC Group Announces Organizational Adjustment

2014-11-13

Economic Daily News / Reporter Pan Yiqing / Immediate Report
YC Group announced today that ACHEM Chemical will acquire approximately 49% of the shares in Ningbo YC, a subsidiary of YC Group, for $17.84 million. This move aims to achieve the strategic goal of vertical integration in the tape business.
This year, YC Group has been continuously adjusting the organizational structure of its subsidiaries. The tape business segment will be fully concentrated in ACHEM Chemical, while Xinzhou Global will handle packaging material sales, and ACHEM will focus on real estate ventures and development.
Since Ningbo YC primarily produces OPP film and was previously under the structure of YC BVI, the company has decided to adjust its structure and transfer the operational contributions of Ningbo YC to ACHEM Chemical.
ACHEM Chemical will increase its capital in ACHEM Technology Holdings Limited to hold shares in Ningbo YC.

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