Largest Polyester Manufacturer in Northeast China Fully Shut down

Heilongjiang Longdi Company Limited announces that 70 percent of the company's fixed assets valued 290 million Yuan has been listed for public auction, the notice period will be ended on Sept. 27. Currently, the largest polyester manufacturer in Northeast region has been fully shut down.

It is learned that Heilongjiang Longdi Company Limited was formerly known as Heilongjiang polyester factory, it was built in 1975, with an annual output of 170,000 tons of PET melt capacity, its industrial fiber production once ranked the fourth place in the country, its direct-spun staple fiber once monopolized Northeast market, the company enjoyed a high reputation within the industry, it completed list in 1998.

To ease financial debt and the problems in finance occupied by large shareholders, Longdi Company obtained 275 million Yuan loans from branch of the State Development Bank in Heilongjiang Province through the loan platform of Investment Corporation of Heilongjiang Province, Longdi mortgaged 352 million Yuan of its assets to the provincial investment company in 2006. 3 years passed, Longdi Company sank into a difficult state, it could not maintain normal production, so it was unable to pay principal and interest loans. The company entered the auction process in June this year according to law.

The auction includes a total construction area of 225,000 square meters of factory buildings and auxiliary buildings, a total area of 405,000 square meters of 8 industrial lands, nearly 3,000 sets of production equipment, these together account for about 68 percent of Longdi's fixed asset shares. Another 30 percent of its assets have been mortgaged to related units in earlier time. More than 800 existing employees have been on holiday since July, currently all of its production lines have been shut down.