In recent years, Yongjin has continuously expanded its production capacity by virtue of its remarkable quality and cost advantages. At present, the construction of the main projects of Yongjin shares is being carried out in an orderly manner. Specifically:
(1) the second production line of the subsidiary Jiangsu Yongjin IPO investment project "annual processing of 75000 tons of ultra-thin precision stainless steel plate and strip" has entered the installation stage, with the exception of some imported equipment, the rest of the equipment has been basically put into production during the reporting period.
(2) the first production line of the parent company Zhejiang Yongjin "annual processing 125000 tons precision cold rolled stainless steel production line" has been installed and put into trial production in June 2021.
(3) the second phase of the second phase of the wide cold rolling project of Guangdong Yongjin Metal Technology Co., Ltd. has completed the construction of the main plant and the second half of the equipment has been installed.
(4) Jiangsu praseodymium Seiko Technology Co., Ltd., a subsidiary of Jiangsu praseodymium Seiko Technology Co., Ltd., has completed the construction of the main plant and equipment foundation of the annual processing project of 55000 tons of composite materials.
(5) the subsidiary Yongjin Metal Technology (Vietnam) Co., Ltd. officially started the project with an annual production capacity of 250000 tons of precision stainless steel plate and strip in late October 2020. the construction of the project is progressing smoothly, and the civil engineering project has been basically completed and equipment installation has been started recently.
(6) the subsidiary Yongjin Metal Technology (Thailand) Co., Ltd. has an annual production capacity of 260000 tons of precision stainless steel plate and strip project "is going through the design planning, environmental protection examination and approval and other preliminary procedures, Synchronize land requisition work.
While promoting the expansion of the main production capacity in an orderly manner, Yongjin shares also began to lay out the downstream stainless steel pipe industry of the business industrial chain.
In April 2021, Yongjin acquired a 51% stake in Jiangsu Yinyang stainless Steel Pipe Co., Ltd. (hereinafter referred to as "Yinyang Pipe Industry"), a company specializing in R & D, production and sales of stainless steel water supply systems. The project with an annual output of 100000 tons of stainless steel pipes and accessories, implemented by a wholly-owned subsidiary of Silver Sheep Tube Industry, is expected to produce some products by the end of the year.
Due to the strong pressure-bearing capacity of stainless steel pipe, it can effectively reduce the rate of water seepage, and it also has the characteristics of long service life, good thermal insulation, strong corrosion, zero pollution and so on.
From the perspective of policy support, there have been many policies on the promotion and application of stainless steel pipes in China. The Ministry of Housing and Construction has clearly promoted the application of stainless steel water pipes, and relevant departments in many provinces and cities in China, such as Shenzhen, Beijing, Zhejiang, Jiangsu, Fujian, Shandong and other places have issued documents for the transformation of old residential areas and the application of stainless steel water pipes in secondary water supply projects.
From the perspective of application permeability, stainless steel pipes account for about 1% of the current domestic water supply system, while European and American countries, Japan and South Korea began to use stainless steel pipes on a large scale in the 1980s and 1990s, and now the popularization rate has reached more than 90%. It is estimated that in the next decade, 70% of drinking water pipes will be replaced by stainless steel pipes, and the stainless steel pipe industry has broad prospects.
According to the statistics of the Water supply and drainage equipment Branch of China Construction Metal structure Association, the demand for raw materials in the domestic stainless steel pipe industry is about 250000 tons in 2020, and is growing at an annual growth rate of about 15%.
At present, after years of development, there are hundreds of manufacturers in the domestic stainless steel pipe industry, mainly concentrated in Zhejiang, Jiangsu, Guangdong, Sichuan, Shandong and other places. There are many manufacturers in the industry, but the scale is generally small, and the product quality is uneven.
Although the Yinyang pipe industry is small, the output of its brand products is in the forefront of the industry in the field of stainless steel pipes, and the market has a good reputation. After the completion of the acquisition, Yongjin stainless steel cold-rolled products can directly supply Yinyang tube industry and personalized customization, so that it has better product competitiveness, in addition, Yinyang tube industry can also improve its brand promotion through the platform of listed companies, and the two sides can achieve better synergy through cooperation.
In the future, Yongjin will, on the basis of stabilizing the existing market advantages of cold-rolled stainless steel plate and strip, constantly optimize product structure, improve product performance, optimize existing production process system, continuously increase product market share, enhance market competitiveness, and devote itself to developing into a professional stainless steel cold rolling enterprise with global influence and market competitiveness.
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