On June 28, 2019, CNNC TD announced to set up a wholly-owned subsidiary in Guangzhou Nansha New District with an investment of USD 145.5 million (RMB 1 billion). According to the plan, the new wholly-owned subsidiary will be mainly engaged in procurement and sales of titanium dioxide, ilmenite, and raw materials of titanium ores. Apart from that, new businesses concerning chemical technology plan to be operated in the subsidiary, such as procurement and sales of machines and electronic equipment, development in the field of chemical science and technology, technical services regarding technology transfer, technical consulting, export, and import of chemical commodities.
CNNC TD expressed that the location of the new wholly-owned subsidiary plays a significant role in the future development of the company. Lying in the Greater Bay Area of Guangdong-Hong Kong-Macao (GBA), the new wholly-owned subsidiary is able to seize more opportunities in terms of strategic implement, which is beneficial to deepening the innovation-driven development strategy of the company.
What’s more, Guangzhou Nansha New District is in possession of multiple strategic policies of the country, which serves as a great policy advantage for the wholly-owned subsidiary. For example, Guangzhou Nansha New District has been rated as the “national new district” and the “test area of free trade” by the Chinese government. Besides, next to Hong Kong and Macao, Guangzhou Nansha New District also brings a very important regional advantage to the subsidiary, which will make a difference to the strategic position of the company.
All in all, the establishment of the new wholly-owned subsidiary is an important step into the future development of CNNC TD. Not only will it help improve the status of the company in titanium dioxide industry, but it also enables the company to increase its economic benefits, which will have a positive effect on the company’s future.
CNNC TD is one of the largest manufacturers of fine chemicals in China, with main business in production, sales and research and development in the field of titanium dioxide. The production plants of the company consist of 4 subsidiaries, which are CNNC HUAYUAN Titanium Dioxide Co., Ltd. Gansu Mining Area Branch, Anhui GISI Titanium Dioxide (Group) Co., Ltd. , Wuxi Haopu Titanium Industry Co., Ltd. and Iron Oxide Pigments. CNNC HUAYUAN (Shanghai) Titanium Dioxide Co., Ltd. is responsible for sales, while Science and Technology Centre of CNNC HUAYUAN Titanium Dioxide Co., Ltd. is the R&D centre.
During the announcement of the new subsidiary, the board of directors of CNNC TD also reaches a consensus on a capital increase of USD 64 million (RMB 440 million) in its sub-subsidiary, Dongfang Titanium. The capital will come from Anhui GISI Titanium Dioxide (Group) Co., Ltd.
According to CNNC TD, the main purpose of this increase in capital is to further consolidate the financial strength and the comprehensive competitiveness of Dongfang Titanium, which will do good to the sustainable development and build up a better foundation for the long-term development of the company.
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