In early Sept. 2021, Zhejiang Yongtai held the
19th meeting of the fifth board of directors and reviewed and approved a
proposal regarding Inner Mongolia Yongtai's project with an annual production
of 25,000 tons of vinylene carbonate (VC) and 5000 tons of fluoroethylene
carbonate (FEC). Yongtai Technology agreed to allow its wholly-owned
subsidiary, Inner Mongolia Yongtai Chemical Co., Ltd., to use use self-raised
funds to invest in the construction of these two projects to produce VC and
FEC.
The total investment for the project is RMB
450 million, of which the construction investment is approximately RMB 420
million, and the initial working capital is approximately RMB 30 million. The
company can make appropriate adjustments to the specific project investment
content and cost details within the scope of the total investment quota
according to the actual implementation of the project.
After the project reaches its full production
capacity, it will bring an annual income of RMB 4.5 billion and an annual net profit
of about RMB 615 million. The project will give an after-tax rate of return of
63.34%, and the after-tax investment payback period (including the construction
period) is expected to be about 3.5 years.
VC and FEC in high demand for lithium battery production
The main products of the project, VC and FEC,
are important additives for the production of lithium battery electrolytes.
Given the general trend of rapid development in the new energy automobile
industry, the market demand for the products involved in this project is
strong, and the demand for lithium battery materials such as VC and FEC
continues to increase. Through the implementation of this project, Zhejiang
Yongtai's scale advantage in the lithium battery material supply chain will be
further strengthened.
Based on the downstream customers' future
demand for lithium battery electrolyte additives, and based on the likely
continuous development of the lithium battery industry, continuing to build and
increase the production capacity of the products involved in this project is an
inevitable requirement for Zhejiang Yongtai's development.
New project to strengthen Zhejiang Yongtai's place as leading Chinese
chemical manufacturer
After the implementation of the project, the
company's production capacity of VC and FEC products will be greatly increased,
which will effectively meet the future market demand for lithium battery
materials, strengthen the company's business development in the lithium battery
material sector, improve the strategic layout, and continue to strengthen the
company. At the same time, by expanding its scale of production and operation,
the company will continue to strengthen its advantages in production costs,
supply cycle, and quality assurance, and it will continuously improve its
market competitiveness, market share, and overall profitability.
According to Zhejiang Yongtai's official
website, Zhejiang Yontai was established in the 1990s, and it is a
fluorobenzene fine chemical manufacturer with a complete global product chain and
a large-scale production capacity. At present, the company has injected RMB 820
million in capital, total assets of 5.9 billion yuan, and covers an area of
more than 700,000 square meters. It has subsidiaries in Zhejiang, Jiangsu,
Shandong, Chongqing, Shanghai, Fujian and many other places, and it has
established research institutes in the United States and Shanghai. The company
has more than 2,000 employees.
Zhejiang Yongtai adheres to the development
ideas of technological development and economic integration, keenly grasps the
development trend of modern technology, actively adjusts its industrial
structure, and relies on innovation strategies to cultivate and develop a
leading and complete fluorine fine chemical industry chain. The company's products
are widely used in the forefront of technological advances. In the fields of
medicine, pesticides, and liquid crystal materials, Zhejiang Yongtai is a
leader in product quality among Chinese companies.
For more information check our Li-ion
battery China E-News.
About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.