(Yicai Global) April 20 -- Ninestar Corp. has advanced a step in its plan to move its production and processing plant for Lexmark printers and their accessories to Zhuhai in China’s southeastern economic powerhouse of Guangdong province after inking an agreement with the city’s Gaolanggang Port Economic Zone.
With CNY9 billion (USD1.4 billion) investment, the project will aim to turn out about four million printers a year after it becomes operational, said the global major laser printer maker in a statement yesterday.
With construction over eight years, the project will receive CNY800 million in funding from the city government and the economic zone committee for its Phase I and will get another CNY400 million from them for Phase II, per the statement.
The committee plans to sell the land-use rights to the 600,000-square-meter state-owned plot within its administrative area before June 30 to transfer the land for Phase I of the project. The company will commence the construction within six months of acquiring the land-use rights.
After the production value of the Phase reaches CNY6.5 billion -- by no later than June 30, 2023 -- the committee will transfer the 300,000-square-meter parcel for Phase II, the statement said.
The committee will also furnish the listed company with a 120,000-square-meter lot for residential land, including 80,000 square meters for Phase I, and 40,000 square meters for Phase II.
Ninestar Corp. became a controlling shareholder of US printer producer Lexmark International Inc. at end of 2016. The former then announced it would form a joint-venture unit and transfer its production and processing of printers and accessories to the southeastern port city, which neighbors China’s Macau Special Administrative Region.
Editor: Ben Armour