China XLX

China XLX: Intends to construct a new 5th production plant to expand its production capacity for urea and compound fertiliser and the production of melamine. This project will comprise of 3 major parts, will cost approx Rmb2.7b and is expected to be completed by end 2016. Firstly, the acquisition of land in the Xinjiang Uygur Autonomous Region. Secondly, the construction of new production and office buildings. Lastly, the purchase and installation of new equipment and machinery. This project is expected to increase co's expected capacity for urea from 2.1m tons to 2.6m tons of which 0.3m will be used for production of 100k tons of melamine and another 50k tons of urea for 150k tons of compound fertiliser (total capacity 900k tons). China XLX currently trades at P/E of 7.3x