Blue Star Cleaning will increase capital to two holding subsidiaries

This report in view of the expansion of capacity and business development needs, Blue Star Cleaning (000598) The Board of Directors recently passed a plan to increase the capital of its two holding subsidiaries, and signed the "capital increase agreement" with two subsidiaries in Beijing on May 18, 2009 respectively. The announcement shows that the Blue Star cleaning holding 98% of the subsidiary Bluestar Dongda Chemical Co., Ltd. due to the business development and the original polyether polyol device 100,000 tons/year expansion to 160,000 tons/year production capacity needs, will increase the registered capital of 100 million yuan. Holding 100% of the subsidiary of Hangzhou Water Treatment technology Research and Development Center Co., Ltd. because of business development needs, will increase the registered capital of 30.9747 million yuan. Blue Star Cleaning to cash as a contribution to the increase in the registered capital, Blue Star after the capital of the east to increase the registration of 50 million yuan to 150 million yuan, the blue Star clean shareholding ratio from 98% to 99.33%　　Hangzhou Water Treatment company registered capital increased from 64.0253 million yuan to 95 million yuan, the blue Star clean ownership ratio is still 100%. Data show that the Blue Star Dongda expansion of Polyether polyol plant Project Total investment of about 110 million yuan, of which, fixed assets investment of 95.7058 million yuan, liquidity 14.2326 million yuan, the project construction period of one year. Poly ether Polyol for the main business of the Blue Star, the Department of Chemical new materials products, polyurethane is one of the main raw materials, is also a Ulan cleaning actively developed with the TDI-related polyurethane industry chain business. The expansion of its production scale can significantly enhance the competitiveness of blue Star cleaning in the field of polyurethane, and further promote its development in the field of new chemical materials-polyurethane. The additional capital of which 30 million yuan for the expansion of the project, 70 million yuan to supplement the production and operation of the necessary liquidity. Hangzhou Water Treatment Company to increase capital funds to supplement the production and operation of the necessary liquidity, enhance its water treatment in the field of competitiveness.