It is reported that Sichuan Lomon Group Titanium Industry Co., Ltd. (Sichuan Lomon) got a loan of USD118.7 million (RMB750 million) for its new rutile project with design capacity of 100,000t/a. The first batch of loan will be USD90.2 million (RMB570 million), according to CCM International’s August issue of TiO2 China Monthly Report
Sichuan Lomon is ambitious in TiO2 industry and finding ways to expand its TiO2 capacity. Sichuan Lomon, as one of the leaders in China's TiO2 industry, obtains an export volume of 5,142 tonnes in June 2012 while the other two leading TiO2 producers, namely Shandong Dongjia Group( Shandong Dongjia) and Henan Billions Chemicals Co., Ltd.( Henan Billions) exported 4,949 tonnes and 3,902 tonnes respectively at the same time. For a greater expansion of capacity, Sichuan Lomon is also preparing for Initial Public Offering ( IPO). In 2009, Sichuan Lomon failed in IPO application when it wanted to raise a fund of USD152.1 million for a capacity of 60,000t/a rutile TiO2 production line. It failed in the IPO application because TiO2 industry is regarded as a heavy pollution industry.
In Aug. 2012, Sichuan Lomon applies for IPO again. At this time, Sichuan Lomon is going to raise a fund of USD229.4 million for a capacity of 100,000t/a rutile TiO2 production line. The fund increases by USD77.3 million compared with that of the first application time.
Even though it is still under IPO process, Sichuan Lomon is eager to start the project and has taken a loan for it. Now, the project has been approved by Sichuan Environmental Protection Bureau (SEPB). The total investment capital of the project is USD229.5 million (RMB1.5 trillion). Thereinto, the fund spent on environment protection is USD16.8 million(RMB106.3 million), accounting for approximately 7.3% of the total capital. The new production line is built at Lomon production base, industrial development area, Xin City, on the basis of Lomon Group's existing public projects and facilities.
If the project is completed, Sichuan Lomon's annual capacity will increase dramatically. At the same time, the high value products produced in chloride process will strengthen Sichuan Lomon's leading position in export.
Meanwhile, on 30 July, 2012, Sichuan Lomon' product brand was identified as well-known brand in China. According to the regulation, Sichuan Lomon has the exclusive right to stop others from making, using, selling, exporting or copying the brand in certain fields without permission. As a result, Sichuan Lomon was rewarded with over USD158,000 (RMB1,000,000) by Sichuan Provincial Government.
In the word, for a long time, products made in China are regarded as inferior products. Well-known brands sometimes mean excellent and high value-added products. Companies that have well-known brands can earn more profit than others. As one of the top three TiO2 export companies, Sichuan Lomon will benefit a lot from the well-known brand.
At the same time, Sichuan Lomon was listed at 80th in the China Chemical Enterprises 500 ranking list in China Top 500 Chemical Companies Conference on 26 Aug., 2012. It has been two years since Sichuan Lomon has been listed at 80th in the ranking list. During the conference, Development Report of 2012 China Top 500 Chemical Enterprises was released. The report put emphasis on enterprises' quality, efficiency, technology and environmental protection.
Source:TiO2 China Monthly Report 1208
http://www.cnchemicals.com/Newsletter/NewsletterDetail_7.html
Content of China Monthly Report 1208:
China's TiO2 export and import situation in June 2012 2
Sichuan Lomon got a loan of USD118.7 million for rutile project 6
DuPont gains more profit from TiO2 and coatings in H1 2012 8
China's TiO2 producers export more TiO2 in H1 2012 10
China's TiO2 annual conference held in Shandong in July 2012 12
Henan Billions' profit decline 34.5% in H1 2012 13
Huntsman, Tornox and Kronos's financial performance in H1 2012 16
Titanium feedstock import situation in China in June 2012 18
Rio Tino's development in titanium feedstock 20
Titanium feedstock suppliers get an increasing sales of titanium feedstock in H1 2012 21
AkzoNobel and PPG see stable sales revenue growth but net profit decrease in H1 2012 22
The output of plastic products grows 7.7% lower than expectation in H1 2012 24
TiO2 prices decrease in China in Aug. 2012 27
Outline of vanadium and titanium industry development plan 28
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