Sinopec Shanghai Petrochemical's (HKG:0338, SHA:600688) board has approved a contract under which the company will supply steam to Shanghai Jinshan Baling New Materials, a Thursday Hong Kong bourse filing said.

The contract, which will become valid once the parties sign it and remain effective till Dec. 31, has a fee cap of 106.5 million yuan.

Shanghai Jinshan Baling New Materials is owned as to 50% each by Sinopec Shanghai Petrochemical and a unit of its controlling shareholder, China Petroleum & Chemical (HKG:0386, SHA:600028).