Shigo Asia AG
Shigo Asia AG: New loan enables SHIGO to start construction of three new production lines
Shigo Asia AG / Miscellaneous 22.12.2009 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Loan amount of USD 10.5 million - Expansion of production capacity to annually 13.2 million blankets Hamburg, 23. December 2009. SHIGO ASIA AG, the largest synthetic blanket supplier in the world, receives a new loan in the amount of USD 10.5 million (max EUR 7 million) from DEG (Deutsche Investitions- und Entwicklungsgesellschaft). This loan will be paid to Linyi Grene Industry and Trading Co., Ltd., one of the subsidiaries of SHIGO. Linyi Grene intends to expand its existing production capacity from annually 4.8 million blankets to 8.4 million blankets - acrylic and rachel blankets. The total production capacity of SHIGO will be improved from 9.6 million blankets to 13.2 million blankets. The planned investment mainly consists of the construction of a new factory building and an additional waste water treatment plant as well as the purchase of 18 different types of warp knitting machines, 100 west knitting machines, warping machine cutters, quality control equipment, printing lines, washing machines and steaming ovens as well as various equipment for the finishing process such as cutting and carving. Around 5% of the total investment cost shall be used for research and development. Linyi Grene currently employs around 1,100 persons and intends to recruit additional staff of around 800 persons for the expansion investment. 'At present, Linyi Grene has already purchased the land on which the new production site shall be erected. The construction of the production building and the infrastructure is supposed to be finished by the end of April 2010,' says Qian Chunsheng, Chairman of the SHIGO ASIA AG Management Board. The installation of the three production lines for the production of blankets shall be realized until the end of May 2010. The trial production is envisaged one month after the installation of the production lines and the mass production shall start two months after trial production. The term of the loan is seven years with an interest of 6-month USD LIBOR plus 4.4% p.a. About SHIGO ASIA SHIGO ASIA AG develops, produces and sells household textiles. The company is the largest manufacturer of blankets in the world. SHIGO has more than 1 700 employees and observes the highest international standards in its production operations in China. SHIGO's competitive strengths are the development of innovative products and modern production technology. High-quality workmanship and lavish design are outstanding features of the textile products, which are optimised on an ongoing basis with the focus primarily on health and comfort. Press inquiries: Kirchhoff Consult AG, Janina Wismar Tel.: +49 40/609186-50, janina.wismar@kirchhoff.de 22.12.2009 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------
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