(Yicai Global) April 4 -- Shares of Milkyway Chemical Supply Chain Service fell after the Chinese provider of hazardous chemical logistics and warehousing services said will buy a Singaporean peer and signed a supply deal with ExxonMobil’s plant in China. 

Milkyway [SHA: 603713] closed down 2.7 percent at CNY105.81 (USD15.37) today, after earlier dropping by as much as 4.1 percent.

Milkyway’s Singapore unit signed an equity transfer deal with 23 individual shareholders of Store Deliver Logistics to acquire the company for SGD22 million (USD16.6 million), the Shanghai-based buyer announced yesterday.

Store Deliver Logistics, certified by the Singaporean government, mainly stores oil refining products, specialty chemicals, and liquid chemicals, Milkyway said.

Singapore is the investment destination and export hub of many chemical companies, Milkyway added, noting that Jurong Island, where Store Deliver Logistics is based, is home to world-leading energy and chemical firms, with a continuous increase of such warehousing needs. Warehouse rents in Jurong are expected to significantly rise in the future, it pointed out.

In a separate statement yesterday, Milkyway said it has also inked an agreement with ExxonMobil to provide the US oil major’s plant in Huizhou, Guangdong province, with chemical products logistics, warehousing, transportation, and other supportive services from this month to the end of March 2026. The deal is worth about CNY118 million (USD17.1 million), it added.

Editor: Futura Costaglione