JV with Yanchang and Shell (Guangdong) Petroleum to build service zones along expressways in Guangdong Province

Guangdong Yueyun Transportation Co. Ltd. said its non-wholly owned subsidiary Guangdong Top-E Expressway Service Zone Company Limited and Yanchang and Shell (Guangdong) Petroleum Company Limited have entered into a non-legally binding letter of intent to establish a joint venture (JV) company. Both the entities are based in China.

Guangdong Yueyun Transportation Co. is engaged in the provision of motor vehicle transportation and auxiliary services, material logistics services, expressway service zones and related auxiliary services.

The JV will be engaged in, among other things, the sale of oil products, liquefied natural gas, lubricants and other petroleum products, as well as the operation of businesses at service zones including convenience stores, restaurants, shops and auxiliary services.

The pilot project will be located at Dahuai Service Zone in Enping, Guangdong Province, China. Guangdong Top-E plans to increase its site area so as to expand its commercial service offerings, including oil products and non-oil products.

The initial target is to develop about 20 expressway service zones and gas stations, while the long-term target is to develop an expressway gas station network with huge economies of scale within and outside Guangdong Province,leveraging the expressway networks of Guangdong Top-E and GCGC.