Xiamen tungsten industry subsidiary company plans to invest 1.998 billion yuan to build cemented carbide industrial park (phase II) powder and mining alloy production line project.

On the evening of October 28th, Xiamen tungsten industry announced that in order to further develop tungsten powder and cemented carbide business, Xiamen Jinlu cemented Carbide Co., Ltd. (hereinafter referred to as "Haicang Jinlu"), a subsidiary of the company, plans to invest 1.99808 billion yuan in the construction of cemented carbide industrial park (Phase II) powder and mining alloy production line project in Haicang District of Xiamen City.

Xiamen tungsten industry said that the project plans to invest 1.99808 billion yuan to build an annual production line of 12000 tons of tungsten powder, 11200 tons of mixtures, 2000 tons of mining alloy production line and supporting workshops in Xiamen Jinlu Haicang cemented Carbide Industrial Park. logistics center (including maintenance workshop, quality control center), supporting living area of the park, etc. Among them, the annual production capacity of 7500 tons of powder, 6000 tons of RTP mixture and 1100 tons of mining alloy production line is the relocation of the existing production capacity of Xiamen Jinlu Special Alloy Company (Jimei District).

The project is scheduled to start before the end of 2021, with a construction period of about 3 years, and is expected to be completed by the end of 2024 (the specific construction cycle shall prevail according to the actual construction situation). The relocation of the existing production line is expected to take place in the first half of 2025. The expected payback period of the project is about 8.95 years (including the construction period), and the internal rate of return after tax is about 13.04%. The above data are calculated by the company according to the current situation, which may be different from the actual operation in the future. Please pay attention to the investment risk.

Xiamen tungsten industry pointed out that with the development of cemented carbide products in recent years, the production capacity of powder products in Xiamen base has become a bottleneck due to site restrictions, which can not meet the needs of the company's future strategic development. In order to ensure the sustainable development of end products, it is necessary to expand the production scale of Xiamen base. At the same time, due to the shortage of existing workshop space, automation transformation and environmental improvement programs are limited, the new workshop construction combines the workshop design with the automation scheme, reserves the automation space, and plans the workshop layout rationally. increase air supply systems and other environmental improvement facilities to alleviate labor pressure and provide guarantee for the sustainable development of products. In addition, Xiamen Jinlu cemented Carbide Industrial Park Phase I construction of no supporting logistics storage facilities and living areas, the second phase of the construction has improved the construction of related supporting facilities.

The purpose of this project is to relocate and expand production, mainly to meet the raw material needs of the company's terminal products, such as cemented carbide bars, mining alloys, tool blades, etc., as well as the incremental needs of long-term cooperative customers, and the sales channel is stable. The production process used adopts the existing technology, and the process is mature and stable.