On 22 Sept., 2016, Zhejiang Juhua Co., Ltd.
(Zhejiang Juhua) announced that it had finished the private placement of
300,750,282 A shares and had raised a sum of USD479.16 million (RMB3.20
billion).
![](http://www.cnchemicals.com/Webdata/WebResources/image/20161010/20161010113401_6673.jpg)
Source: Baidu
Specifically, the targets included Yuan Zhimin (president of Kingfa Sci. &
Tech. Co., Ltd.), Zhejiang Salt Industry Holdings Co., Ltd., Zhejiang Tourism
Investment Limited Company and Juhua Group Corporation. Following this
subscription, the first 3 have been listed in the "top10 shareholders', and
Yuan Zhimin especially became the 2nd largest one by subscribing 120,300,751
shares at USD191.66 million (RMB1.28 billion).
This private placement, according to analyst CCM, is favourable for Zhejiang
Juhua to enlarge its assets scale and improve its financial conditions. In
addition, Zhejiang Juhua will make full use of the sum to construct new
projects, which are expected to help optimise the business / product structure,
and enhance its competitiveness, sustainability and comprehensive capability.
In particular, the sum will be invested into:
-
Premium-marketed fluorochemicals: to give
full play to its advantages in infrastructure, production scale and production
technology, so as to enrich its product mix and consolidate its leading
position in domestic fluorochemical industry
-
Chlor-alkali chemicals: to tightly combine
this business with fluorochemical business, so as to achieve synergistic
growth; to level up its position in polyvinylidene chloride (PVDC) segment, and
expand its product range, so as to achieve differentiation
-
Electronic chemicals: to carry out business
activities in special gas and electronic gas fields, so as to achieve
synergistic effect with its wet electronic chemical business, optimise product
structure and create new source of profit growth
Polyvinylidene fluoride (PVDF) project
The portfolio spans PVDF resin for solar energy backplane membrane (4,000 t/a),
PVDF resin for wire and cable (3,500 t/a), PVDF resin for water treatment
membrane (1,000 t/a), PVDF resin for Li-ion battery adhesives (1,000 t/a) and
PVDF resin for coating (500 t/a).
The project will contribute to the company's capacity distribution, and
development of premium marketed PVDFs, so as to achieve differentiated growth:
the extension into downstream fields will create new source of profit growth
for the company and improve its economic effect, since it will differ itself
from domestic companies which run the business of PVDF mainly (= about 80%) for
coatings.
![](http://www.cnchemicals.com/Webdata/WebResources/image/20161010/20161010113055_0910.jpg)
Pentafluoropropane (HFC-245fa) project
The project consists of 2 phases, each capacity designed to reach 5,000 t/a.
Currently, HFC-245fa plays a vital role in substituting the traditional
dichlorofluoroethane (HCFC-141b) foaming agent, as it boasts excellent property
in environmental protection and enables the foaming agent to save more energy.
Now the Chinese government is advancing the prohibition of using HCFC-141b in
foaming agent, in 3 major downstream industries including refrigerator,
electric water heater and refrigerated container, which suggests a broader
market prospect for HFC-245fa.
2nd phase new fluorine-enriched materials
project
The products include tetrafluoroethylene (TFE, 10,000 t/a), hexafluoropropylene
(HFP 5,000 t/a), high-performance fluororubber (3,000 t/a) and modified
polytetrafluoro ethylene (PTFE, 4,000 t/a).
Now China is increasing the demand for fluororubber and modified PTFE. Take
automobile industry for example: in 2014, its demand for fluororubber and
modified PTFE reached nearly 10,000 tonnes and 6,000 tonnes respectively, with
AAGR of 10%+ both. According to CCM research, however, most of the
manufacturers can only supply low and medium-marketed products, with reliance
on imports of premium products. This can be seen in the modified PTFE in
particular: about 80% are imported.
Hence, Zhejiang Juhua, equipped with fluororubber and modified PTFE production
capacities, is expected to ease the dependence on import to certain extent and
improve its market position and competitiveness.
Fluorine-enriched gas project
(1) 2nd phase high purity electronic gas project: the high purity electronic
grade fluorine-enriched gas (500 t/a) especially, is mainly used for the
etching and cleaning in integrated circuit (IC) and liquid crystal display
(LCD) industries
(2) Fluorine-enriched special gas project: electronic grade nitrogen
trifluoride (2,000 t/a) is mainly used for the cleaning in IC, LCD, solar
energy, optical fibre industries and the cleaning of vapour deposition device;
electronic-grade hexafluorobutadiene (50 t/a) is mainly for the etching of
super premium marketed electronic industry such as super largescale IC.
In recent years, the Chinese government has been encouraging the development of
emerging industries. Specifically, the energy saving and environmental
protection industry, the information and technology industry, the premium
marketed device industry and the alternative energy industry all strongly
support the demand for electronic gas. However, domestic electronic gas
industry is now severely weak in self-sufficiency and is strongly reliant on
imports. In order to realise sustainable and healthy development, localisation
of electronic gas is a necessity.
Zhejiang Juhua raises funds for projects,
2016
No.
|
Project
|
Capacity,
t/a
|
Investment
|
1
|
PVDF
project
|
10,000
|
USD84.30
million (RMB563 million)
|
2
|
1st
phase high-performance PVDC barrier material project
|
32,000
|
USD80.11
million (RMB535 million)
|
3
|
HFC-245fa
project
|
10,000
|
USD48.36
million (RMB323 million)
|
4
|
2nd
phase new fluorine-enriched material project
|
22,000
|
USD81.16
million (RMB542 million)
|
5
|
1st
phase high-purity electronic gas project
|
2,500
|
USD21.86
million (RMB146 million)
|
6
|
2nd
phase high-purity electronic gas project
|
1,050;
4,000 bottle/a (gas mix)
|
USD17.97
million (RMB120 million)
|
7
|
Fluorine-enriched
special gas project
|
2,050
|
USD119.79
million (RMB800 million)
|
8
|
Supplement
to working capital
|
/
|
USD25.60
million (RMB171 million)
|
Note: PVDF stands for polyvinylidene
fluoride;
PVDC stands for polyvinylidene
chloride;
HFC-245fa stands for
pentafluoropropane.
Source: Zhejiang Juhua Co., Ltd. & CCM
This article comes from China Fluoride Materials China Monthly Report 1609, CCM
![](http://www.cnchemicals.com/Webdata/WebResources/image/20161010/20161010113023_0797.jpg)
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Tag: fluoride