1. Henan Billions to raise capital for its titanium slag project
Summary: Henan Billions is entering into the upstream TiO2 industry by constructing a
titanium slag production facility. The facility will not only guarantee its raw materials supply, but
will also reduce the cyclical fluctuations in its profits.
Tag: TiO2, Price, Import volume, Export volume, Trend, Production, Sichuan Lomon, Henan
Billions, DuPont, Huntsman Corporation, Coatings, Titanium feedstock
Henan Billions Chemicals Co., Ltd. (Henan Billions), the biggest public company in China's
TiO2 industry, announced that it will raise funds privately for a titanium slag production project,
which will support its 60,000t/a chloride process TiO2 project, according to Titanium China
Monthly Report issued by CCM in November.
The project investing into the upstream of TiO2 was first put forward in Feb. 2013 (please refer
to Titanium Dioxide China Monthly Report 1303 for more details) and has been adopted by the
board of trustees. On 7 Nov., Henan Billions released an advanced plan for raising capital of
USD91.47 million (including issuance cost) to fund the construction and the operating liquidity
of its titanium slag project.
The titanium slag project includes two phases. The first phase requires an investment of
USD107.77 million, including USD81.55 million for the construction and USD26.21 million for
the operating liquidity. The first phase is estimated to be completed after one and a half years
and is estimated to provide 150,000 tonnes of titanium slag every year, which is sufficient for
Henan Billions's 60,000t/a chloride process TiO2 project.
Henan Billions has embarked on this project to reduce the effects of fluctuations in the titanium
feedstock price and to reduce its costs for raw materials. Possessing titanium resources
means initiative in industry chain, which is especially vital for developing chloride process TiO2.
Possessing titanium resources can reduce the raw materials cost and cyclical fluctuations in
profits, as the byproducts of titanium slag produced in the machining process can offset the
cyclical fluctuations of the TiO2 industry. In order to reduce its reliance on titanium feedstock
imports and to cut costs, Henan Billions has reduced its import volume of titanium feedstock in
2013 and has enhanced its purchases of domestic titanium feedstock, especially those
produced in Panzhihua City, Sichuan Province.
Although small investors of Henan Billions oppose the capital raising plan and despite Henan
Billions' stock declining by 5.47% to USD3.29 (RMB20.22) per share on 7 Nov., the day when
the plan was released, as the issue price is USD3.05 (RMB18.72) per share, the issue plan is
not likely to fail. This is because the issue plan is targeted at large investors and the current
controllers of Henan Billions. Therefore, although the stock price is under the issue price, the
targets of the issue plan will still subscribe to the new shares.
Table of Contents of TiO2 China Monthly Report 1311
2. The China Titanium Week 2013: sluggish market status would last to the end of 2013
Domestic TiO2 price kept stable from mid-Oct. to mid-Nov.
China's "Double 11" online shopping festival fails to live up to expectations for the coating
Wind power industry to bring recovering demand for heavy duty coating
Henan Billions to raise capital for its titanium slag project
CPI Yuanda acquires upstream SCR TiO2 supplier
Import volume increased by 22.42% while export volume declined by 6.46% in Sept.
Domestic TiO2 price may edge down after the traditional selling season
Domestic titanium feedstock supply increased in Sept. as domestic capacity expanded
Domestic TiO2 market is improving as profitability improved and inventories fell in Q3
Titanium Dioxide China Monthly Report, issued by CCM on 25th, is mainly comprised of five
columns of news and reports related to TiO2 market, including “Supply & Demand”, “Company
Dynamics”, “Upstream”, “Downstream” and “Price Update”. You can find out more business
opportunities through the latest and helpful information provided in the report.
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