Sino Grandness Food Industry Group has agreed to invest 600 million yuan (S$122.2 million) to construct a production plant to produce canned products and beverage in Anhui, China.
It entered into a cooperation agreement with Guzhen Municipal Government of Anhui Province whereby the municipal will provide assistance and support in land acquisition and infrastructure as well as necessary administrative services to facilitate the project.
The total project investment cost includes land use rights of 63.6 million yuan.
Construction work is expected to commence next year and be completed by 2016.
The new production plant will be used mainly to produce canned products and beverage.
The project will be funded from internal resources and/or external funding.
It is not expected to have any material financial impact on Sino Grandness's consolidated net tangible assets per share and consolidated earnings per share for the current financial year.