Tech-Long announced on the evening of November 1 that the company and Swire Coca-Cola Co., Ltd. decided to terminate the “PET bottle and bottled water processing contract†and signed the termination agreement. The reason for the termination of the contract was due to the location of the customer's factory site. The contract could not be implemented according to the agreed schedule.
Tech-Long said that the termination of the contract will not affect the business performance of the current year, and part of the contracted equipment that has been processed and manufactured is a common part of the company's production of beverage packaging machinery and equipment, which can be used for other equipment without causing economic losses.
The original contract was signed in January 2010. Tech-Long plans to invest and install a brand new PET bottle and PET bottled water filling production line at the Taizhou Coca-Cola Company in Fuzhou. The total investment of the project is 29.116 million yuan, which was originally scheduled to be installed and commissioned no later than April 30, 2010. Tech-Long disclosed in both the 2010 annual report and the 2011 semi-annual report that the production line has not yet been delivered due to customer location problems.
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