On January 13th, Yongjin Co., Ltd. issued a notice on the "annual processing project of 700000 tons wide cold rolled stainless steel plate and strip". The relevant contents are as follows:
The name of the investment target: Yongjin Metal Technology (Indonesia) Co., Ltd. (hereinafter referred to as "Indonesia Yongjin") annual processing 700000 tons wide cold-rolled stainless steel plate and strip project
Total investment amount of the project: 2.13254 billion yuan
Zhejiang Yongjin Metal Technology Co., Ltd. (hereinafter referred to as "the company") in order to speed up the development of overseas markets, enhance the international market share and the company's overall profitability, through pre-market research, It is proposed to jointly fund the establishment of Yongjin Metal Technology (Indonesia) Co., Ltd. (hereinafter referred to as "Project Company") in Indonesia through its wholly-owned subsidiary Xinyue Asset Management (Singapore) Private Co., Ltd. (hereinafter referred to as "Xinyue assets") and related party Qingzhan Industrial Co., Ltd. (hereinafter referred to as "Project Company"), to build a project to process 700000 tons of wide-width cold-rolled stainless steel strip annually. To meet the growing market demand in Indonesia.
Among them, Xinyue assets holds a 60% stake in the project company, and Qingzhan Industry holds a 40% stake. The total investment of the project is expected to be 2.13254 billion yuan, of which the construction investment is 1.25706 billion yuan, and the planned construction period is 2 years. The starting time depends on the completion time of various formalities.
The purpose of this related foreign investment and its impact on listed companies
The company's foreign investment is based on the company's future development strategic planning, in response to Indonesia's economic development strategy of attracting foreign investment and China's "going out", and making full use of Indonesia's superior domestic and foreign trade market conditions of stainless steel plate.
Through the establishment of overseas subsidiaries, speed up the construction of overseas sales channels and enhance the company's competitiveness in the international market.
Through the establishment of overseas subsidiaries, the company will help to further expand the overseas market of related business, promote the company's performance growth, enhance the company's core competitiveness and overall profitability, and be conducive to the company's medium-and long-term development. Enhance the company's brand awareness in the industry.
This investment is in line with the company's overall development strategic plan, will not have a significant adverse impact on the company's financial position, main business and sustainable operating capacity, and does not harm the interests of the company and its shareholders.
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