Pangang to Recapitalize Dongfang Titanium for Absolute Holding
Summary: Pangang plans to recapitalize Dongfang Titanium, in order to strengthen TiO2 business. Tags: TiO2, Pangang, Titanium, Pangang Titanium, Dongfang Titanium, capital, sulfate rutile TiO2, production capacity
On 23 Dec. 2011, Pangang Group Steel Vanadium and Titanium Co., Ltd. (PGVT) announced that its wholly-owned subsidiary Titanium Industrial Corporation of Pangang Group (Pangang Titanium) will add capital and expand shares in Panzhihua Dongfang Titanium Co., Ltd. (Dongfang Titanium) , according to CCM’s January issue of TiO2 China Monthly Report.
The expansion of capital and stocks aims to support Dongfang Titanium's new sulfate rutile TiO2 project, which will expand the company's TiO2 production capacity from 40,000t/a to 100,000t/a. The new project needs an investment of USD71.4 million in an estimate. (Please refer to TiO2 China Monthly Report Vol.4 Issue 06.11).
By 31 March 2011, Pangang Titanium held 49% of Dongfang Titanium's total shares with an investment of USD15.6million, and Miyi County An'ning Iron & Titanium Co., Ltd. (the An'ning Company) held the left 51% with an investment of USD16.2 millon.
After discussion with Dongfang Titanium, Pangang Titanium decides to acquire another 97 million shares with capital increase (no more than USD27.0 million), and the An'ning Company wants to acquire another 3 million shares. After the completion of the expansion of capital and stocks, Pangang is expected to hold 65% of Dongfang Titanium's total shares, while the An'ning Company will hold the left 35%. As a result, Dongfang Titanium will be absolutely held by Pangang Titanium.
Pangang Titanium's move is in line with its purpose of strengthening its TiO2 business. By 2011, PGVT owns three subsidiaries for TiO2 production, namely Pangang Titanium, Dongfang Titanium and Chongqing Titanium Industry Co., Ltd. (Chongqing Titanium), with a total TiO2 production capacity of 100,000t/a rutile TiO2 and 20,000t/a anatase TiO2. In H1 2011, the rutile TiO2 output of the three companies are 11,000 tonnes,19,000 tonnes and 18,000 tonnes, respectively.
Source: TiO2 China Monthly Report 1201
http://www.cnchemicals.com/Newsletter/NewsletterDetail_7.html
Content of TiO2 China Monthly Report 1201: China's sluggish international trade of TiO2 continues in Nov. 2011 Pangang to recapitalize Dongfang Titanium for absolute holding CNNC Huayuan under bankruptcy reorganization Crimea Titan set a record in TiO2 output in 2011 China's titanium feedstock import weakens in Nov. Vietnam upset by titanium ore export SRL optimistic about titanium feedstock market in 2012 Iluka got high ilmenite revenue growth in 2011 Globe expands ilmenite production in Mozambique Maydos starts coating e-commerce in Dec. 2011 Carpoly recognized as National Enterprise Technology Center Zhanchen Coatings need to redo EPV report for IPO Valspar opens research and development center in China China's TiO2 prices continue to increase in Jan. 2012 Wrap-up China's TiO2 price trends in 2011 Policies of China's TiO2 industry in 2012 TiO2 China Monthly Report, a monthly publication issued by CCM International on 25th of every month, will penetrate into Chinese TiO2 market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 industry.
About CCM CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com. CCM International Ltd. Guangzhou CCM Information Science & Technology Co., Ltd. 17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China Tel: 86-20-37616606 Email: econtact@cnchemicals.com
Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_947.html