en.Wedoany.com Reported - On August 11, the board of directors of China Titanium Energy Chemical Co., Ltd. reviewed and approved two investment proposals, planning to build iron phosphate precursor, titanium dioxide, and ferrous sulfate heptahydrate projects in Gansu and Guizhou, with a combined initial estimated investment of approximately RMB 11 billion. The relevant matters fall within the approval authority of the board of directors and do not require submission to the shareholders' meeting for review.
The iron phosphate precursor project will be implemented by Gansu Dongfang Titanium Industry Co., Ltd., a wholly-owned subsidiary of Titanium Energy Chemical, and will be located in Yindong Industrial Park, Baiyin High-tech Zone, with a total estimated investment of RMB 5.462 billion over two phases. The project plans to establish an annual production capacity of 600,000 tons of lithium iron phosphate and sodium iron phosphate precursors, with Phase I constructing a 400,000-ton-per-year production facility and Phase II constructing a 200,000-ton-per-year production facility.
Phase I is scheduled to be completed and put into operation within no more than 18 months from the start of construction, excluding the site leveling period. Project funds will be sourced through self-owned funds and self-raised funds. Whether Phase II will be constructed, along with its investment progress and implementation pace, will be determined based on the commissioning status of Phase I and subsequent market conditions.
The other investment will be implemented by Guizhou Zhonghe Phosphating Co., Ltd., a controlled subsidiary, which plans to build a 400,000-ton-per-year titanium dioxide production line, a 1.4-million-ton-per-year ferrous sulfate heptahydrate production line, and supporting auxiliary facilities in Shuangliu Town, Kaiyang Economic Development Zone, with an initial estimated total investment of RMB 5.538 billion. The project will be carried out in phases with staged investment and construction, with an expected construction period of no more than 36 months from the start of construction, also excluding the site leveling period.
To supplement the construction funds for the Guizhou project, Titanium Energy Chemical and Guizhou Phosphating Wanrun New Energy Co., Ltd. will inject RMB 400 million into Zhonghe Phosphating in proportion to their shareholdings, with Titanium Energy Chemical contributing RMB 260 million and Phosphating Wanrun contributing RMB 140 million. Upon completion of the capital increase, Zhonghe Phosphating's registered capital will increase from RMB 100 million to RMB 500 million, with Titanium Energy Chemical and Phosphating Wanrun holding 65% and 35% equity stakes respectively, maintaining their existing shareholding ratios.
Zhonghe Phosphating has essentially completed the preliminary project feasibility studies and procedures required for implementation. Subsequent construction funds may also be raised through pro-rata capital increases by shareholders or project financing from financial institutions by the project company. Neither investment constitutes a related-party transaction or major asset restructuring, and the actual investment amounts will be determined based on project construction progress.
