On February 3, Mianyang Fulin Precision Machining Co.,Ltd. announced that its subsidiary, Jiangxi Shenghua New Material Co., Ltd., intends to sign a Project Investment Cooperation Agreement with Guizhou Dalong Huicheng New Material Co., Ltd. to jointly invest in establishing a joint venture company. The target company will undertake the construction of a new project with an annual production capacity of 500,000 tonnes of ferrous oxalate.
The registered capital of the target company is Yuan 300 million, with Jiangxi Shenghua planning to invest Yuan 270 million, holding 90% of the equity in the target company, and Dalong Huicheng planning to invest Yuan 30 million, holding 10% of the equity. This investment is not expected to have a significant impact on the company's financial condition and operational performance for the current year. This cooperation in the ferrous oxalate project aims to meet the company's demand for high-density lithium iron phosphate precursors and is conducive to further expanding the company's LFP production capacity, ensuring the supply of upstream raw materials for its LFP business, and optimizing costs.
Edited by Cassie Li, lixiangying@mysteel.com
