Tantech Holdings Ltd. Establishes Wholly-Owned PRC Subsidiary for its BBQ Products
LISHUI, China, Nov. 3, 2015 /PRNewswire/ — Tantech Holdings Ltd. (TANH) (“Tantech” or the “Company”), a leading manufacturer of bamboo-based charcoal products, announced today that it has established a wholly-owned subsidiary, Zhejiang Babiku Charcoal Co., Ltd. (“Babiku”), a PRC company with registered capital of RMB10 million, to manage its BBQ products business.
The Company is in the process of transferring its self-produced BBQ products business, currently managed by Zhejiang Tantech Energy Technology Co., Ltd. (“Energy Tech”), a wholly owned subsidiary, to Babiku. The Company currently sells two categories of BBQ products, 1) OEM BBQ Charcoal – non-bamboo based charcoal briquettes produced by third parties, and 2) self-produced BBQ Charcoal – bamboo based charcoal briquettes produced in the Company’s Lishui facility and primarily sold in the international market.
As a result of today’s announcement, the Company will have three wholly-owned manufacturing subsidiaries managing the three key product categories separately and independently, with Babiku for self-produced BBQ products, Energy Tech for EDLC carbon products, and Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal”) for branded Charcoal Doctor products. The new corporate structure, with improved focus and accountability, is expected to allow the Company to manage its businesses more effectively.