On August 26, Chinese leading manufacturer of zirconium oxide, metallic zirconium, zirconium oxychloride,single crystal fused aluminum, liquid metal: FJCA Advanced Materials Technology Group announced that in order to promote the company’s strategic development plan and deployment in the new material industry, To enrich the company's industrial chain, the company plans to establish NDWD Magnesium Aluminum Technology Co., Ltd. (tentative name) with CATL, Wanshun Group, Junda Investment, and Yintai Investment at a ratio of 35%: 25%: 17%: 9%: 14% , With a registered capital of 300 million yuan, and jointly invest in magnesium and aluminum alloy projects.
FJCA currently has the production capacity of six series products of zirconia, metal zirconium, zirconium oxychloride, casting modified materials, single crystal fused aluminum advanced abrasive materials, and amorphous alloy materials. Both the grade of zirconium products and the effective grain control ratio of single crystal fused aluminum rank in the forefront of the world, occupying a core position in the subdivision of zirconium materials in the country and the world.
As the leading enterprise in the zirconium metal industry in China, FJCA has joined forces with industry giants such as CATL and Wanshun Group to enter the magnesium-aluminum alloy industry and promote the implementation of the entire industry chain of zirconium-magnesium new materials.
With the development of the new energy vehicle industry, it has become an important issue to reduce the weight of vehicles in an all-round way, especially once the weight reduction of the battery rack/bag is achieved, it will greatly promote the long-term endurance of new energy vehicles. Magnesium is 33% lighter than aluminum and has better strength and corrosion resistance. It is lighter, shielded, and lighter, which is the future industry development direction. The main application areas of this magnesium-aluminum alloy project are automobile lightweight, including battery packs, keels, dashboards, wheels, seats, etc. The partner CATL is a leading global power battery company, and Wanshun Group is a well-known auto parts manufacturer in the industry. This cooperation can give full play to their respective advantages and form complementary advantages. The project has a large market development space.
Both FJCA and CATL are located in Shouning County's magnesium mines, which are rich in hydropower resources, which can effectively compensate for the fact that the die-casting process uses more electricity. In the magnesium-aluminum alloy project jointly invested with CATL, the lightweight battery pack project is the focus of cooperation.
FJCA has been mainly engaged in zirconium material-related industries since 2000. The production capacity of fused zirconia has exceeded 20,000 tons, making it one of the largest production bases in the world; the taste of fused zirconia produced has reached 99.8%, leading the world in technology and mainly used In ceramics, refractory, brake pads and other fields. In order to seize the development opportunities of new zirconium-based materials and continuously enrich the depth and breadth of products, in 2018 we acquired LNHG, a downstream sponge zirconium production enterprise that focuses on fused zirconia. At present, we have built one of the largest sponge zirconium production bases in China and even Asia. After the completion of the first and second phases, the annual production capacity will be 5,000 tons. In 2020, with the help of a good financing platform of listed companies, we issued 205 million yuan of convertible bonds, which will provide strong support for the 20,000-ton oxychloro-carbazirconium project (planned product of 100,000 tons, to be constructed in two phases). With strong financial support, the project is expected to be put into production at the end of this year or early next year.
After the industrial layout in recent years, the company’s industrial layout of the upstream basic raw materials in the field of zirconium products has been initially completed. It currently covers the two basic raw materials fields of fused zirconia and chemical zirconium. The industrial complementarity between zirconium products and The synergy has achieved initial results. In the future, the company will expand from the field of zirconium-based materials and actively deploy zirconium-based materials in molding and material applications, such as liquid metal, nanocomposite zirconia, electronic ceramics, and zirconium teeth. Striving for the strategic goal of a new material supplier focusing on the integration of zirconium products.
FJCA established the Zirconium Magnesium Industry Fund. It is building a zirconium-based liquid metal project. The company’s nano-zirconia project has also begun construction. The magnesium alloy project has officially landed to further strengthen the zirconium-magnesium industry. Related new materials are in smart phones, 5G, military, Accelerating the extension of application areas such as automobiles and building materials and advancing the development of the entire industry chain of new zirconium-magnesium materials will help further enhance the company's competitiveness and industry influence, and enhance the company's overall profitability. In the future, the company will embark on the fast track of development, which is worth the expectation of our investors.