Hong Kong-based Kingboard Chemical Holdings said yesterday it had scrapped a plan to invest up to 800 million yuan (US$96.39 million) in a hydro-power plant in Qingyuan of Guangdong Province.

The Qingyuan municipal government has agreed to lower electricity rates, which would save Kingboard about 2.5 million yuan (US$301,000) on electricity per month, said Paul Cheung, chairman of the laminates and printed circuit maker. Therefore, there was now no need for the company to invest in a power plant.

Hoping to cut its electricity bill, its Singapore-listed unit Kingboard Copper Foil Holdings signed a memorandum of understanding last year to buy the fixed assets of the Yinde power plant, a major supplier of electricity to Kingboard's copper foil production in Guangdong.

Cheung also said Kingboard would invest at least 500 million yuan (US$60.24 million) in four new industrial projects in the next three years.

These include a glass-fabric factory and a copper-foil factory in Lianzhou of Qingyuan as well as a new production line for glass epoxy laminates in Fogang.

Kingboard also plans to co-operate with China National Offshore Oil Corp to build a methanol factory in Hainan Province. The project will involve investment of US$120.48 million, with Kingboard to hold 40 per cent stake in it.

(HK Edition 10/09/2003 page7)