Yichang inks first 10-billion yuan project for 2023

The huge 120-hectare project will be located in Dangyang Baling Chemical Industry Park. When in full swing, it is expected to generate annual sales revenue of 17 billion yuan, profit of 1.8 billion yuan and tax of 950 million yuan, as well as create 675 new jobs for the area. 

Phase I of the project - a 280,000-ton refined phosphoric acid plant - will be completed within 24 months. Phase II covers a 150,000-ton lithium dihydrogen phosphate plant and a 200,000-ton lithium iron phosphate plant. Phase III includes additional production capacity of 50,000 tons of food-grade phosphoric acid and 100,000 tons of high-end phosphate for batteries.

Chemicals firm Tonghua Group ranks among China’s top 500 manufacturers and top 500 petrochemical companies. Its main products include phosphorus compound fertilizer, titanium dioxide, phthalic anhydride, pyrite, and battery material iron phosphate.

Tonghua works with international companies such as Veolia of France and Samsung of South Korea. It has production bases in several Chinese provinces, including Anhui, Hubei and Jilin.

Tonghua Group has been investing in Yichang for more than 15 years. In October 2006, Liuguo Chemical (SH.600470), one of its listed subsidiaries, bought a 15 percent stake in Yichang Mingzhu Phosphate, a firm with an annual production capacity of 450,000 tons of phosphate rock.

On December 29, 2022, Liuguo Chemical issued a private placement plan to issue 156 million A-shares to no more than 35 designated investors and raise up to 800 million yuan for battery-grade refined phosphoric acid projects. The funds raised will be funneled to the Dangyang project.