Guangdong Orient Zirconic to acquire assets of titanium firm
Shanghai. July 1. INTERFAX-CHINA - Shenzhen Stock Exchange-listed Guangdong Orient Zirconic Ind. Sci. & Tech. Co. Ltd. announced on June 30 that it plans to buy certain assets from Liaoning Province-based Chaoyang Baisheng Titanium & Zirconium Co. Ltd. for RMB 120 million ($17.68 million).
According to the announcement, Orient Zirconic hopes to buy a number of Chaoyang Baisheng's fixed assets, intangible assets, zirconium sponge-related inventories, patents and production technologies. Funding for the transaction will come mainly from the company's cash reserves and bank loans.
Chaoyang Baisheng is a leading Chinese producer of both zirconium and titanium sponge. It has an annual production capacity of 10,000 tons for titanium sponge, 30,000 tons for refined titanium tetrachloride and 3,000 tons for refined zirconium tetrachloride. It also produces 600 tons of industrial zirconium sponge each year and 150 tons of zirconium sponge for use in the nuclear industry.
In 2009, Orient Zirconic generated a sales revenue of RMB 268 million ($39.49 million) and net profit of RMB 30.16 million ($4.44 million), up 40.66 percent and 19.07 percent year-on-year, respectively. The company aims to increase both these figures by 50 percent in 2010.