The collection of new titanium industry, Longyuli for the first time with sponge titanium production capacity

Two weeks after announcing its bid for Yunnan Metallurgical Xinli Titanium Co., Ltd. (hereinafter referred to as Xinli Titanium Industry), Long Yuli, Asia's largest titanium dioxide company, announced that it had signed a property rights transaction contract with Yunnan Metallurgical Group Co., Ltd. (hereinafter referred to as Yunye Group), the controlling shareholder of Xinli Titanium Industry. This means that the company will officially bring the new titanium industry into the pocket, and the first time long-standing titanium production capacity of sponges.
11 days! Longyu li bottom price to compile the new titanium industry
in the extended acquisition, longyuli once again demonstrated the "world martial arts, only fast not broken" the truth

. Just 11 days have passed between the board's adoption of the takeover bill on May 13 and the signing of the deal on May 24.
to start with a listing on the Beijing Property Exchange a month ago.
April 18, Yunye Group publicly listed its 68.1% stake in The New Titanium Industry and 5,219 million yuan in debt on the Beijing Property Exchange.
according to information from the Beijing Property Exchange, Yunye Group will have a base price of 829 million yuan for 68.1% of the new titanium industry, of which 1 yuan for the new titanium industry and 829 million yuan for related claims.
On May 13th, the 17th interim meeting of the 6th Board of Directors of Longyuli considered and approved the "Proposal on the Bid for the Sale of New Titanium Equity and Related Claims by Yunye Group on the Beijing Property Exchange", and the acquisition of Xinli Titanium industry officially began.
On the evening of May 27th, Long Yuli announced that the company had signed a property rights transaction contract with Yunye Group on May 24th, which also marked 11 days after the adoption of the board resolution.
At the same time, according to the contents of the contract between the two parties, Long Yuli will complete the acquisition in installments, of which the first payment amount of 248.7 million yuan will be completed within 5 trading days of the signing of the contract, the remaining 580.31 million yuan will be paid by December 20, 2019.
addition, according to the prior announcement, in addition to the above-mentioned claims, Longyuli after the completion of the acquisition, will also bear the new titanium industry 4 total of 169 million yuan of historical legacy costs.
Borrowing a ship out of Hailong Yuli to complement the high-end sponge titanium production capacity
data show that the new titanium industry was established in 1999, registered capital of 2.04 billion yuan, is a collection of mining, selection, metallurgy and deep processing in one of the titanium industry chain company. The company's two wholly-owned subsidiaries, Lufeng Xinli Titanium Co., Ltd. ("Lufeng Xinli") and Wuding Xinli Titanium Co., Ltd. ("Wuding Xinli"), are located in Lufeng County and Wuding County, Chuxiong County, Yunnan Province, respectively. Lufeng Xinli construction has 60,000 tons / a titanium dioxide and 10,000 tons / a sponge titanium project, Wuding Xinli construction has 250,000 t/a titanium iron ore selected plant project and 80kt / a high titanium slag and supporting mining projects.
financial data show that the new titanium industry has long been insolvent and into the mud of losses. As of February 28, 2019, the Company's net assets were -4.5 billion yuan. The company lost 314 million yuan in 2018 and 269 million yuan in the first two months of this year. It should be noted that the new titanium industry is currently in a state of shutdown.
why is Long yuli willing to pay a lot of money for loss-making assets?
To this, Long Yuli said that the new titanium industry is the domestic start-up construction of early titanium production and processing enterprises, the introduction of foreign advanced technology, to create a high titanium slag, chlorinated titanium dioxide and sponge titanium production line. If the successful bid for this project will help to improve the company's production capacity of chlorinated titanium dioxide, increase the production line of sponge titanium, is conducive to grasping the chlorinated titanium dioxide and high-end titanium alloy material development opportunities.
In addition to the layout of high-end sponge titanium, Long Yuli believes that the new titanium production line is located in Lufeng County and Wuding County, Chuxiongyu Autonomous Prefecture, Yunnan Province, adjacent to highways and railways, adjacent to China's titanium capital Panzhihua City and Beibu Bay coastal port, easy access to raw materials and products, can be with Longyu The 500,000 tons of Pythythyeum ore upgrade and conversion of titanium chloride slag innovation project under construction at the Yuli Panzhihua base echoes that yunnan province is rich in hydropower resources, is a national hydropower energy base, low electricity price costs, will greatly reduce the energy costs of high titanium slag and sponge titanium, improve the competitiveness and profitability of the company's products.
In addition, Long said that the company is the only one with sulfuric acid and chlorination production process of large-scale titanium dioxide production enterprises, can take advantage of the formation of technology, quality, market and management and many other advantages, the new titanium production line repair, technical reform, expansion, rapid expansion of production capacity to better meet domestic and foreign customer demand, thereby consolidating and enhancing the company's leading position in the titanium industry.
fact, in addition to the above reasons, an important focus of Longyuli's willingness to buy the new titanium industry is its layout in the titanium alloy industry.
To the significance of the acquisition, Long Yuli said that through this acquisition, will make the company for the first time with sponge titanium production capacity, become a new profit growth point, further improve the company's titanium ore - titanium chloride slag - chlorinated titanium dioxide - sponge titanium - titanium alloy industry chain, improve the company's overall operational efficiency, to achieve "do deep titanium products, do fine titanium derivatives" development goals.
supplement chain: the 300,000 tons of chlorination method up to the production of titanium alloy production capacity of
data show that sponge titanium as the name implies is sponge-like titanium. It is the oxidation reaction of titanium iron ore and chlorine gas, which is turned into titanium tetrachloride, which is then placed in a sealed stainless steel tank, filled with argon and reduced by magnesium metal. Titanium's two most prominent advantages are higher than strength and strong corrosion resistance, which determines that titanium must be in aerospace, weapons and equipment, energy, chemical, metallurgy, construction, transportation, medicine and other fields of application prospects. Medical titanium tibia sells for tens of thousands of dollars.
, with the acquisition officially completed, Xinli Titanium has also officially become a stake in Longyuli subsidiary. As a result, Longyuli has the first production capacity in high-end sponge titanium.
May 27th, in an interview with Dahe Daily Dahe Caico, the person in charge said that after the success of the new titanium industry, Longyuli can take advantage of the technology, quality, market and management that have been formed. The production line of 60,000 tons/a titanium dioxide, 10,000 tons/a sponge titanium and high titanium slag project in Xinli Titanium Industry was repaired, technically modified and expanded to rapidly expand production capacity, thus consolidating and enhancing the company's leading position in the titanium-white industry.
fact, three days before the signing of the equity transfer agreement between Longyuli and Yunye Group, Longyuli's production capacity of 300,000 tons of chlorination method has just been put into operation.
May 21, 2019 National Titanium White Powder Industry Annual Meeting and Dragon's Lylian Group 300,000 tons / year chlorinated titanium dioxide production line opening ceremony was held in Jojo.
At the ceremony on the same day, long-term chairman Xu Gang introduced that long-term yuli has now formed Henan coke, Sichuan Deyang, Panzhihua, Hubei Puyang and other three provinces and four five titanium-white industrial base, with the company's 300,000 tons / year chlorination capacity successfully started, the main titanium dioxide production capacity will reach about 950,000 tons, the scale of Asia's first, the world's leading.
in the case of the expansion of chlorination production capacity and the new titanium industry revenue bag, Southwest Securities believes that long-scale chlorination titanium dioxide as a fulcum to extend up and downstream. Upstream, the company has its own titanium mineral energy of 800,000 tons / year, and with Ruixin and Anning iron titanium signed an agreement to ensure the supply of titanium ore; Downstream, invest 1.98 billion yuan to build an annual output of 30,000 tons of high-end titanium alloy new materials project, the development of high-end titanium alloy materials. The company is committed to creating low-cost titanium essentials - titanium chloride slag - chlorinated titanium dioxide - sponge titanium - titanium alloy industry chain optimization and upgrading, always adhere to enhance the company's profitability and core competitiveness, promote the company's sustainable development.