[SMM brief Review] the new distribution network is about to send electricity to reduce electricity price cost. Dalian R & F Nickel-based New Materials will effectively enhance the smelting cost advantage.

SMM7 March 28: according to recent reports, the Lvyuan distribution network, a pilot project for incremental distribution business reform in Wafangdian, Liaoning Province, is about to be completed for power transmission. According to reports, the first phase of the Lvyuan distribution network started the construction of the 220kV R & F No. 1 substation transmission and transformation project in the Santai New material Industrial Park, with a total investment of 364.11 million yuan and covering an area of 34699 square meters.

The project will build a new 220 kV substation with 4 220 kV transformers and 4 new 220 kV lines and related facilities. At present, the project is progressing smoothly and has entered the stage of equipment installation and commissioning, which is expected to be completed and connected to the backbone network of Liaoning Province by the end of this month.

It is reported that on October 8, 2018, the Northeast Energy Regulatory Administration issued the second power business license (power supply category) of the incremental distribution pilot project Liaoning Luyuan Distribution Power Co., Ltd., to the owner of the incremental distribution business pilot project in Wafangdian City, the Taiping Bay Coastal Economic Zone, and the Hongyan River Circular Economic Zone. This is the first power business license issued by the Northeast Energy Regulatory Administration to private enterprises holding power distribution enterprises.

The Liaoning Provincial Development and Reform Commission issued a project planning plan and identified Liaoning Luyuan Distribution Power Co., Ltd. as the project owner by means of public bidding. Luyuan Distribution Power Company is absolutely controlled by Dalian Fuli Nickel-based New Materials Co., Ltd., which accounts for 90% of the equity. The pilot project will carry out the construction of the distribution network of three new material industrial parks in advance, and the project plans to build a 220kV substation with four 220kV transformers and four new 220kV lines and related facilities.

According to SMM research, Dalian Fuli Nickel-based New Materials Co., Ltd. is currently building 8 33000KVA RKEF high nickel pig iron production lines with an annual production capacity of 48000 nickel tons. Two lines are expected to be put into production by the end of the third quarter of 2020. After the implementation of the above power projects, the electricity price cost will be effectively reduced and the smelting cost advantage will be enhanced.

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