On the evening of June 4th, Shi Dachenghua (603026) announced that due to the influence of the global COVID-19 epidemic, the local examination and approval and other work of the project could not be substantially promoted, in view of the expiration and termination of the cooperation agreement between the company and the joint venture party, the advantages of the original project site no longer exist, coupled with the impact of the future epidemic and uncertain factors of market development, the company decided to terminate the construction of lithium-ion battery material project in Poland.
According to the announcement issued by Shi Da Shenghua on the evening of March 11, 2019, the company plans to set up a joint venture with PCC Rokita to invest in the construction of 20, 000 tons / year ethylene carbonate project in the first phase. The project is expected to invest 170 million yuan to build a 20, 000-ton / year ethylene carbonate plant. The project is built in Xiabu Zegg in the province of Lower Silesia, Poland, covering an area of 46000 square meters, and the project construction period is expected to be 2 years.
The joint venture agreement stipulates that the initial share capital of the joint venture company is 5000000 zlotys, of which Shi Dashenghua accounts for 51% of the share capital of the joint venture company and PCCRokita accounts for 49% of the share capital of the joint venture company.
Battery Network noted that affected by the epidemic, the output of Shida Shenghua C3H6O3 series products in 2020 was 460000 tons, which was basically the same as in 2019. In 2021, the company will continue to expand the production capacity of carbonate products to cope with the expanding downstream demand, including: 1) the subsidiary Dongying Shida Shenghua invests in the construction of methyl ethyl carbonate production capacity of 50,000 tons / year, with a construction period of 12 months; 2) steadily promote the construction of Shida Shenghua (Quanzhou) 440000 tons / year new energy materials project, the first phase will increase the production capacity of ethylene carbonate 120000 tons / year, C3H6O3 100, 000 tons / year, is expected to enter the trial production stage in November 2021.
According to the research report released by Oriental Securities, unlike the industrial-grade solvents of large quantities, the production of battery-grade solvents is extremely difficult, and the number of enterprises capable of engaging in them is relatively small. Whether the mainstream solvents are DMC, EC or EMC, leading enterprises account for about 40%, and CR2 is about 50%, CR2 is about 70%, so the industry pattern is more excellent. Oriental Securities estimates that with the growth of demand for lithium batteries and electrolytes, the demand for battery-grade solvents is expected to reach 1.12 million tons by 2025, about four times the current demand, with broad room for long-term growth.
Shi Da Shenghua also said in the 2020 annual report that the company's carbonate products, lithium hexafluorophosphate and other products have always maintained a high market share, among which battery-grade products can accurately and effectively meet the higher-level needs of customers. market share is far ahead in the industry. The next step is to make an overall layout and planning for the production capacity of five kinds of carbonate battery-grade products, and the focus of development is to further increase the production capacity proportion of battery-grade products and reduce the proportion of industrial-grade products.
In addition, Shi Da Shenghua also actively layout lithium battery electrolyte additive materials to enhance the company's profitability. Lithium battery electrolyte additive material is one of the core business of the company's future development. The layout of lithium battery electrolyte additive material will help to provide the source power for the sustained and rapid growth of the company's lithium-ion battery material business.
Benefiting from the shortage of battery-grade solvents, the share price of Shi Da Shenghua has hit record highs one after another. At the close of trading on Friday (June 4), the share price of Shi Da Shenghua has reached 115 yuan per share, while on June 5, 2020, the share price of Shi Da Shenghua is only 24.95 yuan per share.
