Nanjing titanium to be injected into lianhua fibre
Nanjing Titanium to be Injected into Lianhua FibreSummary: Jiangsu GPRO Group Co., Ltd. (GPRO Group) may inject the assets of itssubsidiary Nanjing Titanium Dioxide Chemical Co., Ltd. (Nanjing Titanium) into ShanghaiLianhua Fibre Co., Ltd. (Lianhua Fibre).Tags: TiO2, Titanium Dioxide, titanium, Lianhua Fibre, GPRO Group, Nanjing TitaniumJiangsu GPRO Group Co., Ltd. (GPRO Group) may inject the assets of its subsidiary NanjingTitanium Dioxide Chemical Co., Ltd. (Nanjing Titanium) into Shanghai Lianhua Fibre Co., Ltd.(Lianhua Fibre), according to a statement released by Lianhua Fibre on April 18, 2012, accordingto CCM’s April issue of TiO2 China Monthly Report.In the statement, Lianhua Fibre revealed a preliminary restructuring plan to sell 100% stake in itswholly owned subsidiary Jiangsu Lianhua Garden Technology Co., Ltd. (Lianhua Garden) tounrelated third parties and purchase 100% stake in Nanjing Titanium from issuing shares to allthe shareholders of Nanjing Titanium. The two transactions are premises for each other andinseparable—one of the two transactions will terminate automatically if the other cant beimplemented.Lianhua Fibre got listed on Shanghai Stock Exchange (SSE) in 1992. Trading of Lianhua Fibresstocks has been suspended since March 12, 2012. Verification of the assets and negotiation withseveral shareholders of Nanjing Titanium are under way.Previously, GPRO Group attempted backdoor listing by restructuring CNNC Huayuan TitaniumDioxide Co., Ltd. (CNNC Huayuan). It planned to inject its 78.14% stake in Nanjing Titanium,100% stake in Nanjing Petro-chemical Co., Ltd. (now called GPRO New Materials Co., Ltd.) and100% stake in GPRO Property Co., Ltd. (GPRO Property) into CNNC Huayuan, but failed at lastin 2010.Founded in 1957, Nanjing Titanium is the earliest TiO2 producer that produces rutile TiO2 andfiber grade TiO2 with sulfate process in China. It was transformed into a private company from astate-owned company in 2003 and became one main enterprise of GPRO Group in 2005 throughrestructuring.Lianhua Fibre had bad financial performance during 2009~2011, with assets liabilities ratio of225%, 226% and 433% for the years of 2009, 2010 and 2011. With a registered capital ofUSD26.5 million, the company got revenue of USD4.1million and net profit of USD2.6 million in
2011. By Dec. 31, 2011, Lianhua Fibres total assets valued USD2.8 million with negative netassets.Source: TiO2 China Monthly Report 1204http://www.cnchemicals.com/Newsletter/NewsletterDetail_7.htmlContent of TiO2 China Monthly Report 1204:Chinas TiO2 export and import situation in Feb. 2012Leading TiO2 producers in China enjoy improved profitabilityPangang Group has strong titanium production in Q1 2012Shandong Dongjia eagerly develops TiO2 production technologyNanjing Titanium to be injected into Lianhua FibreTitanium feedstock import still strong in China in Feb. 2012Kenmare turns losses into gains last yearSRL sees strong production of rutile and ilmenite in Q1 2012Iluka sees output decline of all mineral sands except ilmenite in Q1 2012Rio Tintos titanium feedstock output grows in Q1 2012PPG enters into technical collaboration with ArgexHigh cost pressurizes TiO2 downstream companies to raise product pricesShandong Qifeng more than doubles net profit in Q1 2012TiO2 prices continue to decrease in China in April 2012……TiO2 China Monthly Report, a monthly publication issued by CCM International on 25th of everymonth, will penetrate into Chinese TiO2 market from a global view, deeply analyse TiO2 industrialchain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics,aiming to provide the most valuable information about China’s TiO2 industry.About CCMCCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff ofmore than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis,Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its newproprietary product ValoTracer.For more information, please visit http://www.cnchemicals.com.