In mid-October 2019, DFD announced that it
planned to invest in and set up a joint fluorochemical subsidiary Henan Fuxing
Industrial Co., Ltd (Henan Fuxing Industrial) with Huayuan Industrial Co., Ltd
in Mianchi county (Huayuan Industrial).
According to the announcement, the registered
capital of Henan Fuxing Industrial is RMB 100 million, with DFD and Huayuan
industrial providing RMB 51 million and RMB 49 million respectively. The contributing
investment of DFD and Huayuan Industrial account for 51% and 49% of the total
registered capital respectively. Henan Fuxing Industrial will mainly produce Fluorine
chemicals, research and develop the technology of solid wastes, conduct operations,
as well as develop industrial investment. Huayuan Industrial was founded in
2012, with a registered capital of RMB 5 million. Huayuan Industrial mainly
focuses on the research, development, and production of calcium aluminate
powder, polyaluminum chloride, upscale and unshaped refractory materials, as
well as bauxite. The announcement also mentioned that collaboration with Huayuan
Industrial will help to further develop the fluorine chemical industry of DFD
in the future.
DFD emerged as leader in fluoride
industry in 2011
In 2011, DFD consolidated its position in
the fluoride industry. In the same year, DFD successfully completed a project
of producing 2000 tons of LiPF6 and the quality of these LiPF6 products set the
standard for the international market. DFD earned RMB 41.11 million from this
venture, causing beneficial economic and social effects.
The project of the annual production of
2000 tons of LiPF6, hydrofluoric acid and Battery Grade Lithium Fluoride was
progressing steadily in 2011. By December 31, 2011, DFD company already
registered 134 patents with 65 authorized patents and three patents for
invention. DFD was titled as a technological innovation demonstration
enterprise by both the Ministry of Industry and Information Technology of China
and the Ministry of Finance of China, and the project of inorganic fluoride
cleaner production was commended as a vital project for resource conservation
and environmental protection in 2011 by the National Development and Reform
Commission of China.
While DFD company in Kunming was conducting
several foreign investment projects, DFD company in Shenzhen started operation.
The development of fluorite resources in DFD company made outstanding progress.
Several fluorite development projects carried out together with other domestic
companies made steady progress as well.
DFD lost millions in alternative fuel
vehicle investment
DFD, an inorganic fluoride chemical
industry, was the first A-share listed company in China, with its main business
in lithium batteries and associated materials. In 2015, Hebei Hongxing
Automobile Manufacturing Co., Ltd (Hongxing Automobile) was acquired by DFD. In
the same year, with the popularity of DFD in the lithium battery and LiPF6
market, the company’s shares rose steadily.
However, DFD was not content to remain at
its current level of production. The company started to enter the alternative
fuel vehicle market, attempting to create a whole new production line of
alternative fuel vehicles from lithium battery. In September 2015, DFD invested
RMB 3 billion to set up a new base for Hongxing Automobile with the local
government in Xingtai County. In August 2016, DFD provided another RMB 200
million for Hongxing Automobile. Afterwards, DFD planned to invest RMB 5.15
billion for the project of the annual production of 300 thousand alternative
fuel vehicles. However, there was still no breakthrough for Hongxing
Automobile.
Some analysts indicated that logically
speaking, DFD’s annual goal of producing 100 thousand vehicles in 2018 was
hopeless. In 2016, Hongxing Automobile lost RMB 40 million. Even though the
loss in 2017 was smaller than that in 2016, it was too early to determine if
there would be a breakthrough in the area of alternative fuel vehicles.
For more information on China’s fluorochemical
market, please check our China Fluoride Materials Monthly Report.