Longwei Petroleum Investment Holding has planned to finance the acquisition of the assets of Haujie Petroleum.

The company signed a letter of intent to acquire the assets of a fuel storage depot, with a 100,000 metric ton storage capacity, in northern Shanxi Province in China for an approximately
$106.5m.

The company expects the facility to contribute approximately $300m to revenues and $40m to net income during the fiscal year ending 30 June 2012.

Longwei intends to finance the asset acquisition using a combination of cash on hand, bank and other financing, and working capital assets.

The company signed a letter of intent with Shangxi Jiangtong Chemicals to acquire the assets of Haujie, Jiangtong’s wholly-owned subsidiary, for an approximately $106.5m.

The assets are located in Xingyuan Township, Fanshi County (south of the main train station) in northern Shanxi Province, China.