SINGAPORE - China Sunsine Chemical Holdings' subsidiary on March 8 entered into an investment agreement with the local government of Shanxian County to acquire an 800 mu (534,000 sq m) plot of land to carry out an investment project in phases.

The project is meant to further expand the wholly owned subsidiary Shandong Sunsine's production capacity in rubber chemical products.

The land is located in Shandong Shanxian Chemical Zone. The agreed investment amount is up to 2.5 billion yuan (S$505.2 million), of which 1.5 billion yuan will be invested in property, plant and equipment.

The unit price of the land will be determined by an open tender, and the lease period will be set in due course.

Shandong Sunsine has agreed to pay 20,000 yuan per mu as a deposit for the land. The local government has agreed to facilitate the initiation of the project, the usage of the land, business and tax registration, as well as the supply of power and water to the land.

The acquisition will be funded by internal resources and is not expected to have any material impact on the consolidated net tangible assets per share, or earnings per share of the group for the financial year ending Dec 31, 2019.