China-based HaiKe Chemical Group has won a RMB 230 million (£19 million) production contract with Chinese oil major Sinopec.

AIM-quoted HaiKe, which focuses on petrochemicals, biochemicals and speciality chemicals, is to produce refined diesel and petrol products for Sinopec Shandong Petroleum Branch, a division of China Petroleum & Chemical Corporation, whose shares are listed in New York and Hong Kong. HaiKe will use crude oil bought under an agreement reached last month with China National Offshore Oil Corporation, another large group also listed in New York and Hong Kong.

Last week, HaiKe said it had partially reopened its oil refinery facilities as a result of ‘improved market conditions’. In July, the company had shut them temporarily for a major overhaul, blamed on a squeeze between ‘consistently high oil prices and the absence of further price adjustments for oil products’.

Floated last year at the equivalent of 79.8p, HaiKe shares surged to 203p before crumbling to 50.5p last month. They have now rallied to 62.5p, valuing the company at £24 million.

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HaiKe Chemical Group	AIM	£10.55m	27.50p	0.00p
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