Hunan Sokan to set up automotive coating project 03-24-2023

Summary: In mid-March 2023, Hunan Sokan announced that the company planned to establish an automotive coating project in Youxian High-tech Industrial Development Zone.

On 18 March, 2023, Hunan Sokan New Materials Co. Ltd. (Hunan Sokan) announced that the company signed the Investment Contract with the People's Government of Youxian County, Zhuzhou City, Hunan Province out of long-term strategic development needs. Hunan Sokan intended to build an automotive coating project in Youxian High-tech Industrial Development Zone in Zhuzhou City with its own or self-raised funds. The total investment of this project is USD288.18 million (RMB2.00 billion).

 

This project, divided into two phases, covers an area of around 15.33 hectares. Specifically, the first phase and the second phase cover an area of around 10 hectares and 5.33 hectares respectively. This project mainly constructs production workshops, warehouses, and scientific research buildings.

 

Hunan Sokan stated that the signing of this contract was based on the development situation of automotive coating industry, development trend of the industry and its own development needs. This project will improve the company's industrial layout, enhance its core competitiveness, and promote the strategic development of the company.

 

Hunan Sokan's preliminary financial data for 2022 showed that during the reporting period, Hunan Sokan achieved revenues of USD73.19 million (RMB507.96 million), slipping by 0.05% YoY; net profits attributed to shareholders of the listed company went down by 15.93% YoY to USD11.80 million (RMB81.88 million). Hunan Sokan said that its revenues from high end consumer electronics sector reached USD61.47 million (RMB426.58 million), dropping by 11.22% YoY because of the depressed macro economy and slack downstream demand. Meanwhile, Hunan Sokan's revenues from passenger car sector picked up by 236.76% YoY to USD10.90 million (RMB75.64 million) for the company seized the market opportunities of the rapid development of alternative energy vehicle industry.

Source:CCM


More information can be found at CCM Titanium Dioxide China Monthly Report.


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