Jiangsu DeLong Nickel Industry Planned to Acquire Chenggang Group with Full Capital



Jiangsu DeLong Nickel Industry Planned to Acquire Chenggang Group with Full Capital

Jiangsu DeLong Nickel Industry Co., Ltd is a private enterprise dedicated to manufacture of nickel nickel-iron alloy products with advanced technique process, in Xiangshui, Yancheng it has 2 50000 DWT grade shipping docks, completed 24 nickel-iron alloy production lines with 1,000,000 t/a scale and one 1,500,000 t/a high-end stainless steel workshop, one 2 million t/a 1450 high-end stainless steel hot rolled steel sheet (including 3 anneal-pickle line) production lines which is under construction, the estimated pre-tax sales income in 2016 can reach 26 billion yuan. Meanwhile, the said enterprise invested and constructed a nickel-iron alloy production base in Indonesia, Phase I involves investment of USD 995 million for constructing 15 nickel-iron alloy production lines, for annual 900,000 tonnes of nickel-iron alloy, and is scheduled to be launched into operation at the end of this year.

Jiangsu DeLong Nickel Industry Co., Ltd plans to acquire Chenggang Group, and invest 1.6 billion yuan to dismantle Chenggang Group’s existing equipment and execute technology upgrading renovation, develop 700,000 t/a high-end stainless steel bar and wire product production scale, it is estimated to fulfill annual pre-tax sales income of 10 billion yuan, and profit tax of 1 billion yuan.

This time’s cooperation will fully settle Chenggang Group’s liability, reinvigorate enterprise assets, reverse Chenggang Group’s consecutive loss and abnormal operation, develop new economic growth points, it will greatly promote transition & upgrading of traditional industry and continual steady development of industrial economy. Meanwhile, it will also effectively diffuse nearly 1 million tonnes iron and steel capacity, further optimize iron and steel product structure, and enable it to progressively extend toward more high end product chain such as black stainless steel, color stainless steel, food grade stainless steel; it is expected to build a 50 billion yuan grade stainless steel industrial park in the future.