Zhejiang Yongtai to establish fluoroethylene carbonate project 10-23-2021

In early Sept. 2021, Zhejiang Yongtai held the 19th meeting of the fifth board of directors and reviewed and approved a proposal regarding Inner Mongolia Yongtai's project with an annual production of 25,000 tons of vinylene carbonate (VC) and 5000 tons of fluoroethylene carbonate (FEC). Yongtai Technology agreed to allow its wholly-owned subsidiary, Inner Mongolia Yongtai Chemical Co., Ltd., to use use self-raised funds to invest in the construction of these two projects to produce VC and FEC.

The total investment for the project is RMB 450 million, of which the construction investment is approximately RMB 420 million, and the initial working capital is approximately RMB 30 million. The company can make appropriate adjustments to the specific project investment content and cost details within the scope of the total investment quota according to the actual implementation of the project.

After the project reaches its full production capacity, it will bring an annual income of RMB 4.5 billion and an annual net profit of about RMB 615 million. The project will give an after-tax rate of return of 63.34%, and the after-tax investment payback period (including the construction period) is expected to be about 3.5 years.

VC and FEC in high demand for lithium battery production

The main products of the project, VC and FEC, are important additives for the production of lithium battery electrolytes. Given the general trend of rapid development in the new energy automobile industry, the market demand for the products involved in this project is strong, and the demand for lithium battery materials such as VC and FEC continues to increase. Through the implementation of this project, Zhejiang Yongtai's scale advantage in the lithium battery material supply chain will be further strengthened.

Based on the downstream customers' future demand for lithium battery electrolyte additives, and based on the likely continuous development of the lithium battery industry, continuing to build and increase the production capacity of the products involved in this project is an inevitable requirement for Zhejiang Yongtai's development.

New project to strengthen Zhejiang Yongtai's place as leading Chinese chemical manufacturer

After the implementation of the project, the company's production capacity of VC and FEC products will be greatly increased, which will effectively meet the future market demand for lithium battery materials, strengthen the company's business development in the lithium battery material sector, improve the strategic layout, and continue to strengthen the company. At the same time, by expanding its scale of production and operation, the company will continue to strengthen its advantages in production costs, supply cycle, and quality assurance, and it will continuously improve its market competitiveness, market share, and overall profitability.

According to Zhejiang Yongtai’s official website, Zhejiang Yontai was established in the 1990s, and it is a fluorobenzene fine chemical manufacturer with a complete global product chain and a large-scale production capacity. At present, the company has injected RMB 820 million in capital, total assets of 5.9 billion yuan, and covers an area of more than 700,000 square meters. It has subsidiaries in Zhejiang, Jiangsu, Shandong, Chongqing, Shanghai, Fujian and many other places, and it has established research institutes in the United States and Shanghai. The company has more than 2,000 employees.

Zhejiang Yongtai adheres to the development ideas of technological development and economic integration, keenly grasps the development trend of modern technology, actively adjusts its industrial structure, and relies on innovation strategies to cultivate and develop a leading and complete fluorine fine chemical industry chain. The company's products are widely used in the forefront of technological advances. In the fields of medicine, pesticides, and liquid crystal materials, Zhejiang Yongtai is a leader in product quality among Chinese companies.

For more information check our Li-ion battery China E-News.

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