According to Tiantie’s announcement on July 20, Changjili, a subsidiary of Tiantie, plans to invest in the construction of a project with a production capacity of 50,000 t/a of lithium salt and 3,800 t/a of alkyl lithium (RLi), along with secondary materials. The total investment of this project will be RMB 1 billion. The project will establish annual production capabilities including 30,000 tons of lithium chloride, 10,000 tons of lithium carbonate, 10,000 tons of battery grade lithium hydroxide, 10,000 tons of n-Butyl chloride, 2,000 tons of 2-chlorobutane, 2,600 tons of butyllithium, 400 tons of sec-butyllithium, 400 tons of methyllithium, and 8,000 tons of efficient heat-resistant modified resin.
According to the announcement, the project will start on November 30, 2021 and will be put into operation on May 31, 2023. The project will achieve an annual output value of about RMB 5 billion and a tax revenue of about RMB 400 million. The project plans to achieve an investment of about RMB 45 million per hectare, with an average tax revenue of RMB 150,000 per year.
Tiantie becomes major supplier for Wenzhou railway project
On July 19, Tiantie also announced that Tiantie won the bid for a supply of rubber damping pads and related service items for the track engineering of the first phase of the S2 line of Wenzhou City Railway, with a bidding price of about RMB 144 million. In addition, Tiantie signed a sale contract with Xinyun Engineering of China Railway First Group, with a value of RMB 26 million.
Tiantie is a high-tech company that specializes in the development and research, production and sales of rubber products for track construction. The company’s main products include track structure vibration reduction products and embedded rubber crossing plates which are used in urban rail transit systems, high-speed railways, heavy-duty railways and ordinary railways. Tiantie is also engaged in the research and development, production and sales of other rubber products such as conveyor belts and sealing products.
In April 2021, Tiantie acquired 40% of Jiangsu Changjili New Energy Technology Co., Ltd. (Changjili)’s share at a price of RMB 232 million. Before this transaction, Changjili was a 60% holding subsidiary of Tiantie. After the completion of the acquisition, Changjili will become a wholly-owned subsidiary of the company.
Tiantie’s H1 net profit expected to grow more than 150%
Tiantie released the company’s 2021 semi-annual earnings preannouncement in late June 2021, and the company's performance is expected to rise. Net profit attributable to shareholders of listed companies during the reporting period is RMB 13.70 million-RMB 15 billion, an increase of earnings of RMB 54.5082 million in the same period last year.
The increase in the performance can be
attributed to the following factors. First, benefiting from China’s
transportation development, as well as the continuous development of
metropolitan areas and urban agglomerations, urban rail transit has developed
quickly in China, and as a result, Tiantie has had a consistent supply of
orders. Second, Tiantie has built a rail transit vibration and noise reduction
product platform through process innovation and technology accumulation in
order to continuously expand the types of vibration and noise reduction products.
Furthermore, the company has striven to improve its business structure by
developing seismic isolation and lithium salt products and hence has
accomplished major economic achievements.
For more information, please check our China Li-ion Battery E-News.
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