Jilin Chemical Industrial has agreed to buy 159.5 million yuan (HK$148.17 million) worth of assets from its ultimate parent China National Petroleum Corp (CNPC) to offset debt owed to it for more than three years.
Jilin Chemical Industrial, a subsidiary of PetroChina, will buy water filtering systems and ammonia liquefaction facilities from Jilin Chemical Group, a wholly owned unit of CNPC.
The water filtering systems will increase its consumption of recycled water and lower its water cost of 96 fen per tonne to 45 fen, saving it about 7.31 million yuan annually.
It will also receive an estimated 3.67 million yuan of annual revenue from supplying water to outside entities.
The ammonia liquefaction facilities will be used to cool Jilin Chemical Industrial's production facilities. The purchase was estimated to generate 1.4 million yuan of cost savings a year.
The company expected the acquisitions to result in a combined increase in depreciation charges of 11 million yuan, but would reap total production cost savings of 12 million yuan.