The deal, for which financial terms were not disclosed, was signed on May 20 between the US firm and the Yunnan Province-based washing company. The transaction is currently in due diligence.
Hong Shan has an annual capacity of 150,000 tons of coal and 90,000t of coke and generates approximately $US37 million in revenue each year. L&L also said it will leverage its bilingual management team to aid in the washing facility's expansion.
“We plan to integrate Hong Shan's coke and coal washing operations with L&L's existing coal wholesale operations, which are conducted through our subsidiary, KMC Coal, in Yunnan Province," L&L chairman Paul Lee said.
“We expect to achieve a competitive advantage through this expansion along the coal value chain as well as higher gross margin. We plan to make additional acquisitions in the future."
L&L International, known previously as L&L Financial Holdings, was founded in 1995 with a focus on coal and energy compressors and has been a US reporting company since 2001.
