Baili Lianmeng merger creates titanium dioxide "Big Mac"

On October 28th, the Global Titanium Dioxide (chlorination) Application Forum and the Lomon Billion Alliance press conference were held in Zhengzhou, Henan
.
Henan Baililian Chemical Co.
, Ltd.
and Sichuan Dragon Mang Titanium Industry Co.
, Ltd.
announced that the two companies have become "a family", creating a "big Mac" in the domestic titanium dioxide industry
.
By then, its total production capacity will exceed 600,000 tons, ranking first in Asia and fourth in the world
.
At this point, Lomon and Baililian will embark on a new journey from Asia to the world
.

"This conference is the first public appearance after the merger of Lomon and Baili United.
The merger will have a profound impact on the prosperity and development of the global titanium dioxide industry, and it will be a milestone in the acceleration of the adjustment of the industry structure and the new journey of Lomon and Baili United.

"Said Li Jiaquan, chairman of the China Titanium Dioxide Industry Association
.
In the next step, these two companies will expand their production capacity to 1.
3 million tons and actively build the world's largest titanium dioxide producer
.

　　It is understood that in 2015, Henan Baili United and Sichuan Lomon started the merger
.
On September 19 this year, Baililian issued an announcement that it will issue more than 1.
3 billion shares at a price of 7.
62 yuan per share, raising about 10 billion yuan, of which 9 billion yuan will be used to acquire 100% equity of Lomon Titanium
.
On October 12, the merger was completed
.

　　"After the merger, the new company will have four major production bases and become the only domestic supplier of titanium dioxide in Asia with dual processes of chlorination and sulfuric acid and the entire industry chain
.
" Xu Gang, chairman of Baililian, told reporters
.
It took nearly one and a half years for Baili United to complete a classic big merger in the small chemical industry of titanium dioxide, setting a record for refinancing in the Henan capital market, and also giving birth to a listed company with a market value of more than 30 billion yuan
.

　　"The merger of Baililian and Lomon Titanium has created an industry giant that accounts for 24% of China's titanium dioxide output.
Both parties have complementary advantages and have a certain right to speak in pricing, which has caused drastic changes in the competitive landscape of the industry.

.
"Li Jiaquan said
.

　　Chloride titanium dioxide belongs to the industrial policy direction that the country encourages development.
It is the direction of titanium dioxide industry structural adjustment and product upgrade
.
Xu Gang said that the company will continue to increase investment in chlorination titanium dioxide in the future.
The second chlorination titanium dioxide production base
will be built in coastal areas .
During the "13th Five-Year Plan" period, the company's chlorination titanium dioxide production ratio will be increased to the internationally accepted ratio of 55% for sulfuric acid method and 45% for chlorination method
.

　　"The specific measures we will take are to expand the production capacity of chlorinated titanium dioxide in Jiaozuo production base to 300,000 tons, and the total production scale of sulfuric acid and chlorinated titanium dioxide will be 550,000 tons; technological transformation and expansion of Xiangfan production base in sulfuric acid method The production capacity reaches 200,000 tons; the Deyang production base maintains a production capacity of 250,000 tons of sulfuric acid; and a new production line of 300,000 tons of chlorinated titanium dioxide will be built along the coast in due course
.
Eventually, it will achieve 1.
3 million tons of titanium dioxide production capacity, including 700,000 tons of sulfuric acid method and 600,000 tons of chlorination method, making it the world's largest manufacturer of titanium dioxide
.
"Xu Gang said
.

　　Lomon Titanium Industry and Baililian are respectively the largest and second-largest enterprises in China's titanium dioxide industry
.
Baililian's current production capacity of titanium dioxide exceeds 300,000 tons per year, and has formed a production base in Jiaozuo, Henan.
, Sichuan Deyang production base, Hubei Xiangyang production base and supporting Sichuan Panzhihua vanadium-titanium magnetite comprehensive development and utilization base
.
In October, Baililian announced the results of the third quarter of 2016.
The company's operating income and net profit in the first three quarters were 2.
032 billion yuan and 119 million yuan, the net profit doubled year-on-year
.

　　Longman Titanium has an annual output of 300,000 tons of titanium dioxide, and its main product is multifunctional and weather-resistant rutile titanium dioxide.
It is one of the few in the industry that has large-scale vanadium.
Titanium dioxide enterprises with titanomagnetite resources have a production capacity of more than 600,000 tons of titanium concentrate per year, all of which are used for the production of titanium dioxide
.
In the first three quarters of this year, Sichuan Dragon Mang achieved operating income of 3.
094 billion yuan and net profit of 758 million yuan.
Yuan
.