Xiwang Group steps into financial business

Xiwang Group, a company located in Zouping, Shandong province, and owner of three listed firms, opened a finance company in Zouping on Wednesday, stretching its industrial chain to the financial sector.

"Embarking in the financial sector is a milestone for us as this sector will play an important role in upgrading our industrial structure," said Wang Yong, chairman of Xiwang.

According to the development plan for Xiwang's finance company, Xiwang will raise 10 billion yuan ($1.54 billion) at the capital market during the next three years, in a bid to develop its property, logistics and international trade into pillar industry.

Currently, Xiwang processes three million tons of corn every year and produces three million tons of steel. It is the world's largest production base for injection-used glucose material and crystallized fructose, as well as Asia's largest base for producing starch sugar, malt dextrin and corn oil. It is also China's important base for special steel production.

The group's sales reached 28.2 billion yuan for the past 11 months. Daily cash stock is expected to hit 9.5 billion yuan in five years, said Wang.

Wang said the finance company will help the group manage the group's capital in an efficient way, as well as carry out financial moves like creating financial products.