On June 28,
2019, CNNC TD announced to set up a wholly-owned subsidiary in Guangzhou Nansha
New District with an investment of USD 145.5 million (RMB 1 billion). According
to the plan, the new wholly-owned subsidiary will be mainly engaged in
procurement and sales of titanium dioxide, ilmenite, and raw materials of
titanium ores. Apart from that, new businesses concerning chemical technology
plan to be operated in the subsidiary, such as procurement and sales of
machines and electronic equipment, development in the field of chemical science
and technology, technical services regarding technology transfer, technical
consulting, export, and import of chemical commodities.
Advantages of the new wholly-owned subsidiary
to bring a positive future development
CNNC TD
expressed that the location of the new wholly-owned subsidiary plays a
significant role in the future development of the company. Lying in the Greater
Bay Area of Guangdong-Hong Kong-Macao (GBA), the new wholly-owned subsidiary is
able to seize more opportunities in terms of strategic implement, which is
beneficial to deepening the innovation-driven development strategy of the
company.
What’s
more, Guangzhou Nansha New District is in possession of multiple strategic
policies of the country, which serves as a great policy advantage for the wholly-owned
subsidiary. For example, Guangzhou Nansha New District has been rated as the
“national new district” and the “test area of free trade” by the Chinese
government. Besides, next to Hong Kong and Macao, Guangzhou Nansha New District
also brings a very important regional advantage to the subsidiary, which will
make a difference to the strategic position of the company.
All in all,
the establishment of the new wholly-owned subsidiary is an important step into the
future development of CNNC TD. Not only will it help improve the status of the
company in titanium dioxide industry, but it also enables the company to
increase its economic benefits, which will have a positive effect on the
company’s future.
Further investment of USD 64 million to strengthen
long-term development
CNNC TD is
one of the largest manufacturers of fine chemicals in China, with main business
in production, sales and research and development in the field of titanium
dioxide. The production plants of the company consist of 4 subsidiaries, which
are CNNC HUAYUAN Titanium Dioxide Co., Ltd. Gansu Mining Area Branch, Anhui
GISI Titanium Dioxide (Group) Co., Ltd. , Wuxi Haopu Titanium Industry Co.,
Ltd. and Iron Oxide Pigments. CNNC HUAYUAN (Shanghai) Titanium Dioxide Co.,
Ltd. is responsible for sales, while Science and Technology Centre of CNNC
HUAYUAN Titanium Dioxide Co., Ltd. is the R&D centre.
During the
announcement of the new subsidiary, the board of directors of CNNC TD also reaches
a consensus on a capital increase of USD 64 million (RMB 440 million) in its sub-subsidiary,
Dongfang Titanium. The capital will come from Anhui GISI Titanium Dioxide
(Group) Co., Ltd.
According
to CNNC TD, the main purpose of this increase in capital is to further consolidate
the financial strength and the comprehensive competitiveness of Dongfang
Titanium, which will do good to the sustainable development and build up a better
foundation for the long-term development of the company.
For more information about China's titanium dioxide industry, please have a look at our monthly newsletter Titanium Dioxide China Monthly Report.