On June 23, Zhejiang Sanmei Chemical Ind.Co.,Ltd. issued a Progress Announcement on Subsidiary's Investment Project, disclosing that its wholly-owned subsidiary, Fujian Dongying, has postponed the construction timeline of its 62,000-tonne Electrolyte and Supporting Facilities Project. As of the announcement date, substantial construction has not yet commenced, with the new completion deadline extended to June 2027.
Previously, Fujian Dongying planned to invest approximately Yuan 1.072 billion in the project, funded through internal capital or other self-raised financing. However, since the launch of the project, the market environment for the electrolyte industry has undergone significant changes. With the increasing demand for cost control in downstream users such as lithium batteries and EVs, as well as the transformation of the supply and demand structure in the electrolyte market, the LiPF6 industry faces slowing demand growth, oversupply, and depressed prices, squeezing profit margins. Fujian Dongying has slowed down the construction pace of the project.
Sanmei Corporation stated that the postponement of this investment project is a prudent decision made by the company based on industry development status, strategic planning, and project implementation progress. It is in line with the overall interests of the company and will not have a significant adverse impact on the company's financial condition and operating results. And it has no harm to shareholders-particularly minority investors.
Edited by Cassie Li, lixiangying@mysteel.com
