According to the information from the Guangxi Teng County Media Center on June 28, 2022, Guangxi Jinmao Titanium Co., Ltd. was established in 1970 and is a joint-stock private enterprise specializing in the production and operation of titanium dioxide in China.

Guangxi Jinmao Titanium Co., Ltd.

Signed a contract with the local government to build a 100,000-ton iron phosphate project production line.

 

[Teng County Media Center, June 28] According to data from the Guangxi Teng County Media Center on June 28, 2022, Guangxi Jinmao Titanium Co., Ltd. was established in 1970 and is a joint-stock private enterprise specializing in the production and operation of titanium dioxide in China. The company's main business is focused on the production and operation of titanium dioxide, while also producing industrial sulfuric acid, polymeric ferric sulfate, red iron oxide, and other comprehensive chemical circular economy products. The company currently has two independent supporting titanium dioxide production lines, capable of producing various types of rutile titanium dioxide, pigment titanium dioxide, denitration titanium dioxide, and non-pigment titanium dioxide with a production capacity of 160,000 tons per year, according to market demand; the company has also built supporting production facilities for an annual output of 500,000 tons of industrial sulfuric acid and other products.

The company is located in Tengzhou Town, Teng County, Guangxi, known as the "Hometown of Titanium Dioxide." The geographical location of the company has very convenient water and land transportation conditions, with a "four-in-one" three-dimensional transportation network advantage of railways, highways, aviation, and waterways. Its raw materials or products are sourced from the origin, giving the products unique advantages in resources, quality, cost, and market competition. The company covers an area of about 1,200 acres, with a registered capital of 110 million yuan, more than 1,200 employees, and a market value of over 1.8 billion yuan. The company has strong technology, introducing advanced equipment, technology, and management experience from both domestic and foreign sources. Each process on the production line strictly implements segmented quality control and organizes production according to clean production requirements. The discharge of "three wastes" fully complies with environmental protection discharge standards, and the products have passed ISO 9001 quality management system certification. The "Tengmao" brand titanium dioxide series products meet the national standard GB/T 1706-2006, and this titanium dioxide series has received honors such as Guangxi Product Standard Registration Qualified Unit, Guangxi Famous Brand Product, and Guangxi Famous Trademark.

 The company adopts a rolling development model, fully utilizing regional and resource advantages to expand, strengthen, optimize, and sustain the titanium dioxide industry. It strives to build the company into a leading brand enterprise in the circular economy development of the domestic titanium industry, making the company a truly circular economy, resource-saving, and environmentally friendly green chemical comprehensive enterprise. It aims to become a large-scale integrated production enterprise with comprehensive value-added and competitive capabilities, based on industry and relying on trade, with global procurement and sales, integrated domestic and foreign trade, and upstream and downstream integration, moving towards the "Trustworthy Casting Gold, Root Strong Leaves Flourishing" goal of "Three Specializations" (Professional, Focused, Dedicated).

The construction of culture and modernization requires a large amount of mid-to-high-end titanium dioxide. Therefore, the domestic mid-to-high-end titanium dioxide market has a very broad market development prospect. The company has over 40 years of experience in the production and operation of titanium dioxide, with a large marketing and a complete market service network. It has always adhered to the quality policy of "Excellent Quality Wins Customers from All Directions, Innovation Builds Titanium Dioxide Brand" and the Business Philosophy of "Quality, Service, Value" to serve a wide range of new and old users. The products are sold both domestically and internationally and have received unanimous praise from users, serving as high-quality raw materials for industries such as paint, ink, rubber, plastics, chemical fibers, papermaking, ceramics, and denitration.

  In recent years, the five major overseas titanium dioxide giants have almost simultaneously raised prices, and domestic prices have also begun to follow suit. As of now, titanium dioxide has undergone continuous price increases multiple times. Therefore, after several years of sustained price increases in the titanium dioxide industry, the return to a rational high price stabilization trend has basically been confirmed.

At the same time, the supply-side reform promoted by the government will provide certain project funding support to enterprises with a certain scale, controllable energy consumption, and environmental protection standards, improving the survival space of the titanium dioxide industry. At the 2015 Titanium Dioxide Annual Conference, it was clearly stated that the 13th Five-Year Plan goal for the titanium dioxide industry is to promote supply-side reform. Currently, about 50% of domestic titanium dioxide production enterprises have a production capacity of less than 50,000 tons per year, while the total production capacity of these 50% of enterprises accounts for only 14% of the total national production capacity. Therefore, supply-side reform is likely to accelerate the reshuffling of excess capacity in the industry through measures such as energy consumption limits and environmental inspections, thereby enhancing the concentration of the titanium dioxide industry.

In addition, the company has made corresponding work arrangements in response to the economic development in the post-epidemic era from the following three aspects:

1. If the domestic and international economic situation further deteriorates or maintains the current low growth state for a long time, the market will face significant uncertainty. In response to this uncertainty, the company can still maintain stable operations at the current profit level. Therefore, the current production and operation will not have a significant impact on the company's subsequent steady development.      

2. The pressure on safety and environmental protection has further increased, which may raise emission standards or lower energy consumption standards. The company is already prepared for this risk. For a long time, the company has invested heavily in safety and environmental protection upgrades, achieving compliance with three waste discharge standards. The control of safety and environmental protection has reached an industry-leading level, and through the development of the circular economy, the company can also obtain some income to reinvest in environmental protection, allowing the company's environmental protection efforts to enter a virtuous development level.

3. There are significant changes in customer demand, with some demand for rutile titanium dioxide being replaced by anatase titanium dioxide. In response to this situation, the company has developed some new products with high added value (chemical fiber titanium dioxide, pure titanium for denitration, metallurgical titanium dioxide, etc.) to enhance the company's profitability. Moreover, the company has already opened a production line for rutile titanium dioxide, and the product's reputation, market share, and quality are gradually gaining high recognition from users. The products have also been commercialized and have established a certain customer base.

  In summary, based on the comprehensive market trends of titanium dioxide in recent years, analyzing the company's product structure, quality, cost, circular economy, overall market layout, brand awareness, and customer reserve capacity, the company's development potential and profitability are quite good within the industry.

To strengthen the development of the county economy, in accordance with the development idea of "gathering clusters, strengthening leading enterprises, and supplementing chains," further implement our company's circular economy industrial chain extension development model of "Acid, Titanium, Phosphorus"  , and commit to the deep integration of the titanium industry and the research and manufacturing of new materials. The company relies on technological innovation and efficient operation models to continuously delve into the entire titanium industry field to enhance the ability of titanium to serve human society. With the promotion of new energy technology, iron phosphate, as the core raw material for the production of lithium iron phosphate, currently faces a gap in production capacity due to the rapid increase in demand and production capacity for lithium iron phosphate. The implementation of this project is the company's planning and construction to meet the future market demand for iron phosphate. After the project is completed and put into production, it will help the company seize market development opportunities, expand production and operation scale, and improve overall market competitiveness. In addition, the implementation of this project will further strengthen the company's strategic layout for iron phosphate products and effectively meet the growing domestic and international demand for iron phosphate, aligning with the company's overall development strategy.

Iron phosphate serves as an energy storage and power material for new energy batteries, thus the market prospects for iron phosphate lithium's precursor, iron phosphate, are broad. The construction of this iron phosphate project can utilize the resources and supporting facility advantages of the company's iron source, providing local resources and supporting facility services such as ferrous sulfate for the company's iron phosphate project, ensuring the supply of raw materials for the project while reducing the production and operational costs of the company's products.

To seize opportunities in the new energy market and enhance the added value of the company's by-products such as ferrous sulfate heptahydrate, the company plans to build a new iron phosphate production line with an annual capacity of 100,000 tons (the project construction will also support the production of 100,000 tons of wet-process phosphoric acid per year). The total construction period of the project is approximately 19 months. The construction area of the project is about 100 acres. The total investment for this project is expected to be 600 million RMB.

The construction period of the iron phosphate project is divided into two phases. The first phase of the project began construction in May 2022, and it is expected that the 50,000-ton iron phosphate project of the first phase will be completed and trial production will start in October 2022. The second phase of the project, which involves another 50,000 tons of iron phosphate, started in January 2023, and it is expected to be completed and start trial production in December 2023.