On 23 Feb., 2016, Sinoma announced to launch a 200 million m2/a Li-ion battery separator project. This is expected to break the monopoly by foreign enterprises in premium segment.
On 23 Feb., 2016, Sinoma Science & Technology Co., Ltd. (Sinoma) announced the plan to establish a joint venture namely Sinoma Li-ion Battery Separator Co., Ltd., for the construction of a 200 million m2/a Li-ion battery separator project.
Accordingly, Sinoma will construct 4 wet process Li-ion battery production lines, including 2 lines each at 40 million m2/a and the other 2 each at 60 million m2/a. Meanwhile, 4 ceramics coating lines will also be constructed, capacity given at 40 million m2/a in total.
Specifically regarding the 4 wet process Li-ion battery separator production lines, 2 will be constructed jointly with Dalian Rubber and Plastic Machinery Co., Ltd. and a confidential international company, based on the build-transfer pattern, whilst the other 2 will have key production facilities imported from Japan.
With a total investment of USD142.73 million (RMB935.44 million), USD67.97 million (RMB445.47 million) is self-owned fund (USD42.40 million - RMB277.90 million is sum from build-transfer contract) and the rest USD74.76 million (RMB489.96 million) is bank loan. In addition, Sinoma will first rent the land and house property from Tengzhou State-owned Assets Management Co., Ltd. and buy them later.According to Sinoma’s 13th Five-year Strategic Development Planning, Li-ion battery separator has been listed as a leading business in the company. “The project also conforms with the government’s Li-ion battery industry development planning, beneficial to breaking the monopoly by foreign enterprises in the premium market, achieving import substitution and reducing the costs,” said Sinoma.
The Li-ion battery separator project, in the field of alternative energy and new materials, boasts bright market prospect. However, under the rapidly developing market and the fierce competition, if Sinoma cannot have the production capacity constructed as expected, it, of great risk, may lose the shares in the market. As the foreign enterprises are expanding production and the domestic enterprises are increasing and are improving their technology, the competition will grow fiercer, which may force down the sales price – Sinoma may be unable to gain profits as expected.
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Tag: Sinoma, li-ion battery