Blue Ridge China announced days ago that it invested US$90M to Xinjiang Tunhe Industrial and Trade (Group) Co., Ltd. (Xinjiang Tunhe) for its debt reorganization and full assets acquisition. The newly established Xinjiang Blue Ridge Hunhe Chemical Co, Ltd. has been put into operation.

Xinjiang Tunhe, with resource advantage from Xinjiang, is a corporate group integrating the business of fine chemicals, chemical construction materials, water-saving technology and international trade aspects. However, the company encountered fluid capital shortage with the side effects of Delong Issue, and gradually entered the verge of production-stop phase. In June 2007, the company faced the severe plight where the asset value cannot meet the issued debt, and came to the verge of bankruptcy.

Also in June 2007, Blue Ridge China conducted an on-the-spot inspection of Xinjiang Tunhe. After that, the investor decided to acquire the whole assets of Xinjiang Tunhe, solve all remaining historical problems including debts for once. Moreover, Blue Ridge China will reinvest Tunhe for the enlarged production capacity.