CAC Nantong Chemical (301665.SZ) plans to increase the total investment in the Egyptian agrochemical and functional chemicals project to no more than $271 million.

CAC Nantong Chemical (301665.SZ) announced that, in order to seize market opportunities, optimize the integration of projects, and enhance the company's long-term competitiveness and economic benefits, after careful consideration, the total investment in the Egypt pesticide and functional chemicals project is proposed to be increased from the original amount of not more than 1.5 billion US dollars to not more than 2.71 billion US dollars (equivalent to approximately 19.29 billion yuan based on the exchange rate of 1 US dollar to 7.1168 yuan). The increase in investment amount is based on the company's careful decision-making, aiming to comprehensively enhance the strategic value of the Egypt pesticide and functional chemicals project, mainly for the following reasons: (1) Strengthening the extension of the industrial chain and integration layout: utilizing local resource advantages, additional investment will be used to further synergize upstream raw materials for complementary products, extend the industrial chain layout, deepen resource integration, and significantly enhance the project's synergistic value and overall competitiveness. (2) Enhancing cost and sustainable development advantages: through expanding circular and intensive production, the project can fully leverage local resource advantages, enhance cost competitiveness and risk resistance. Additionally, the increased capital will be used to enhance the level of environmental protection, safety facilities, and main engineering information, automation to ensure compliance with higher standards, and to guarantee long-term green and low-carbon operation. (3) Enhancing project economic benefits: increasing investment aims to further expand the scale of economic benefits, creating more substantial investment returns for the company and all shareholders, and maximizing value.