Golden Dragon to Launch a RMB 300 Million Copper Trading Project After Settling Its 80,000-Ton Precise Copper Tube Project In Wanzhou



Golden Dragon to Launch a RMB 300 Million Copper Trading Project After Settling Its 80,000-Ton Precise Copper Tube Project In Wanzhou

On the morning of April 19, Golden Dragon Precise Copper Tube Group Inc. held a ground-breaking ceremony for its 80,000-ton precise copper tube project in the Wenzhou Economic and Technological Development Zone.

It's learned that Golden Dragon Group's Wanzhou precision copper tube project covers an area of more than 100 mu. 3 precision copper tube production lines with a capacity of up to 80,000 tons have been built with a total investment of nearly RMB 1.4 billion. The project will generate a sales revenue of up to RMB 3.5 billion and a warehousing tax of RMB 54 million/year. In addition, a RMB 300 million copper trading project invested by the Group will also be settled in Wanzhou, bringing a sales revenue of RMB 10 billion and a warehousing tax of RMB 40 million/year. The Group can also provide more than 500 jobs and promote prosperous development of other local industries, bringing immeasurable marginal benefits.

It's also learned that Golden Dragon Group's cooperation with the local government in Chongqing dates back to more than 10 years ago. Precisely, 11 years ago on November 21, 2006, with strong support of the Chongqing municipal government and Jiangjin district government, Golden Dragon Group launched preparations for the construction of the Longyu precision copper tube project in Shuangfu Industrial Park in Jiangjin district, which became a highlight of local economic development. On December 21, 2008, Wen Jiabao visited the factory for inspection and guidance and expressed high hopes for the development of the company. Over the years, Golden Dragon Group has developed deep roots in the Chongqing market through the Longyu precision copper tube project, has created good economic and social benefits in refrigerator, air conditioner and automobile air conditioner markets, and has become a well-known local enterprise.

As a leader in the world's refrigeration industry, Golden Dragon Group has developed a path of introduction, digestion and absorption over the years. Through continuous innovation, the Group has gradually mastered the core technology of copper tube processing and set up production bases in Henan, Shanghai, Jiangsu, Zhuhai, Chongqing, Shandong and North America. The Group has more than 20 production lines with a capacity of more than 500,000 tons, far ahead of its counterparts. Its products account for about 30% in the global market. The Group was awarded the first prize of the Technical Innovation Awards of the Chinese Nonferrous Metals Industry and the second prize of the National Science and Technology Progress Awards in 2016. But due to the impact of the financial crisis, the Group's management defects and single financing channel and its failure to timely enter the capital market during its rapid development, Golden Dragon Group suffered enormous financial risk and saw a major decline in capacity. Just when the Group was going through a most difficult time, the Chongqing government, as its long-term partner, lent a helping hand. With the direct help of the Chongqing Wanzhou Economic Development Zone, the Group has gradually extricated itself from the plight. The Group's copper tube sales rose to 380,000 tons last year and are expected to break 400,000 tons this year. As the business situation is improved, Golden Dragon Group decides to continue shifting copper tube capacity to Chongqing to establish a better presence in the southwestern market and highlight its market advantages while expanding to central markets such as Wuhan and Changsha through cheap water transportation. In addition, the Sino-German copper strip project phase II invested by the Group and German copper processing giant Kermi and the project's future developments will all be settled in Wanzhou.