SHANGHAI PECHEM (00338) will provide personnel borrowing services to Babaoxin Materials.

SHANGHAI PECHEM (00338) announced that the board of directors approved on November 12, 2024, for the company (as the trustee) to enter into a commission contract with Balin New Materials (as the principal). The company will provide personnel borrowing services to Balin New Materials for a consideration of 84.8 million yuan (including taxes). The commission contract will be signed before November 21, 2024. Balin New Materials is a joint venture company owned 50% by the company and Hunan Petrochemical. Considering the cost and convenience of the site selection and personnel construction for the 250,000 tons/year thermoplastic elastomer project, lending personnel to conduct project construction work will benefit the smooth implementation of the project, fully utilize the company's existing resources such as butadiene, and develop styrene-based thermoplastic elastomer product line, helping the company to transition towards "chemicals + materials" and "basic + high-end" development, and achieve the transformation of products from traditional applications to high-end new materials applications.