Shandong Dawn Titanium Invests 1 Billion to Build 200,000 Tons Annual Production Line of Ferrous Sulfate

Shandong Dawn Titanium plans to spend Rmb1.02bn to build a new green production base of co-production titanium dioxide with an annual output of 100,000 tonnes. The project aims to produce high quality titanium dioxide (measured in titanium dioxide) with a by-product of 340,000 tons of ferrous sulfate heptahydrate. The project will recover 135,000 tons of sulfuric acid per year at a concentration of 58%, which will be fully used in the new titanium dioxide production facility. In addition, the project also includes the use of ferrous sulfate produced in the production process of titanium dioxide, the construction of an annual output of 200,000 tons of polyferric sulfate production line; And the use of titanium gypsum produced by titanium dioxide production, the production of 1 million tons of new roadbed materials facilities.

Shandong Dawn Titanium is located in Longkou New Materials and new Energy Industrial Park, founded on July 26, 2007. The company's business scope covers the development, production and sales of titanium dioxide, as well as the management of titanium dioxide raw materials and byproducts such as green alum produced in the production process. The company is also engaged in various kinds of commodities and technology self-support and agent import and export business. As a wholly-owned subsidiary of Dawn Group, Shandong Dawn Titanium focuses on the production of high-grade rutile titanium dioxide, which is widely used in coating, plastic, paper, ink and other industries.

The rutile titanium dioxide product series produced by the company includes R-2195, R-2295, R-2595, R-5195, R-5395, R-3195, etc., of which R-2195 products have passed the United States NSF certification. Product sales network covering the whole country and Europe, the United States, Southeast Asia and other more than 30 countries and regions. The company has passed ISO9001 quality system certification, ISO14001 environmental management system certification and ISO45001 occupational safety and health certification for many years in a row, and since 2013, it has been rated as "Energy efficiency leader benchmarking Enterprise" by SINOPEC Federation for many years. In 2018, the company was identified as a green factory demonstration enterprise by the Ministry of Industry and Information Technology of the State, and became one of the clean production and circular economy demonstration projects cultivated by the titanium dioxide industry technological innovation strategic alliance.

Up to now, Shandong Dawn Titanium Industry Company has an annual output of 100,000 tons of titanium dioxide crude production capacity, including the first phase of the project of 20,000 tons/year titanium dioxide crude production line and the second phase of the 80,000 tons/year titanium dioxide crude production line. The company also has a shared 130,000 tons/year of refined titanium dioxide production line, which is used for finishing 100,000 tons/year of self-produced crude products and 30,000 tons/year of purchased crude products. At the same time, the company has built a production line with an annual output of 200,000 tons of polyferric sulfate, and a production line with an annual output of 1 million tons of new roadbed materials, all using the by-products produced in the production process of titanium dioxide.

Shandong Dawn Titanium Industry Company said that since the second half of 2020, the export volume of titanium dioxide has increased significantly, and the price has continued to rise, reaching the highest level in three years. At present, titanium dioxide export demand is still strong, the company in line with the market development trend, decided to invest 1018,902,900 CNY, in the company's reserved land to build "100,000 tons/year co-production method titanium dioxide green production project." The project will use the co-production sulfuric acid process to produce rutile titanium dioxide, with an annual output of 100,000 tons (measured by titanium dioxide), and achieve the recycling of waste acid, and ultimately achieve the goal of "sulfur - titanium - iron - calcium" co-production.

On October 30, 2021, Lubei Chemical Co., LTD. (Stock code: 600727) Issued a formal announcement, in order to enhance the company's titanium dioxide production capacity and market share, enhance product competitiveness and profitability, and further improve the strategic layout of the titanium dioxide industry, Shandong CNYhai New Material Technology Co., LTD. (hereinafter referred to as "CNYhai Technology"), the holding subsidiary of its wholly-owned subsidiary Shandong Jinhai Titanium Resources Technology Co., LTD. (hereinafter referred to as "Jinhai Titanium Industry"), plans to invest 3,068 million CNY for the construction of a green production project of co-production method titanium dioxide with an annual output of 200,000 tons.

The project will be implemented in two phases, of which the first phase will build 100,000 tons of titanium dioxide, 100,000 tons of artificial rutile, 400,000 tons of ferrous sulfate and 500,000 tons of polyferric sulfate production equipment, the main products include titanium dioxide, polyferric sulfate and artificial rutile, the by-product is ferrous sulfate. The second phase will replicate the construction scale of the first phase, also including 100,000 tons of titanium dioxide, 100,000 tons of artificial rutile, 400,000 tons of ferrous sulfate and 500,000 tons of polyferric sulfate production units. After the project is fully completed, it is expected to reach an annual output of 200,000 tons of titanium dioxide, 200,000 tons of artificial rutile, 800,000 tons of ferrous sulfate and 1 million tons of polyferric sulfate production scale. The construction period of the first phase is expected to be two years, and the second phase is also expected to be two years. After the project is put into operation, it is expected that the annual operating income will reach 4.9 billion CNY, the total profit will be 777.5 million CNY, the income tax will be 194.4 million CNY, and the net profit will be 583.1 million CNY.

On the same day, Lubei Chemical Co., Ltd. also announced that in order to reduce the cost of titanium dioxide production raw materials, shorten the supply cycle of raw materials, extend the upstream raw material industry chain, and expand the titanium industry production base, its holding subsidiary Shandong Lubei Zirconium Titanium New Material Technology Co., Ltd. plans to invest 25,7918 million CNY for the construction of 600,000 tons of zirconium titanium ore selection project. After the completion of the project, it is expected that the annual processing capacity will reach 600,000 tons of zirconium titanium ore, the main products include titanium concentrate, zirconium sand, rutile, garnet, monazite and so on. The construction period of the project is 12 months. After the project is put into operation, it is expected that the annual operating income will reach 2,617.6 billion CNY, the total profit will be 144.7 million CNY, the income tax will be 36.7582 million CNY, the business tax and surcharge will be 3.68100 million CNY, and the after-tax profit will be 110.3 million CNY.

The company said that the investment of the holding subsidiary in the construction of the annual processing of 600,000 tons of zirconium titanium ore selection project will help reduce the cost of titanium dioxide production raw materials, shorten the supply cycle of raw materials, stabilize the supply of raw materials, improve titanium dioxide production capacity, enhance market share, enhance product competitiveness and profitability, and improve the strategic layout of the titanium dioxide industry. Lay a solid foundation for the company's future development.