Nanjing Yunhai Special Metals Co., Ltd. announced on November 16, 2007 that it planed to invest CNY 257 million more in Wutaishan Yunhai Magnesium Industry Co., Ltd. for capacity expansion.

The listed company will earmark the proceeds gained from the recent initial public offering on the Shenzhen Stock Exchange to help Yunhai Magnesium build a project with annual production capacity of 30,000 tons of magnesium alloys and 3,000 tons of metal strontium.

Yunhai Magnesium is a wholly owned subsidiary of Yunhai Special Metals and has registered capital of CNY 60 million now. The proposed capital injection from its parent will pad up its capital base to CNY 120 million.

Founded in 1993, Yunhai Special Metals went public on the Shenzhen Stock Exchange on November 13, 2007. It issued 48 million shares in the IPO at CNY 10.97 apiece. The company is producing and selling nonferrous metal alloys. – SinoCast