Tianshan Aluminum issues non-public shares to raise funds of 5 billion yuan
2020-12-23 15:28:54 [Print]
Tianshan Aluminum announced its non-public issuance on the evening of December 22. The issue price was finally determined to be 6.55 yuan (1 USD dollar) per share, and the company issued 763 million shares to raise funds of 5 billion yuan (764 million US dollars).
Tianshan Aluminum reported that the 5 billion yuan (764 million US dollars) includes 3 billion yuan (458 million US dollars) for the alumina project of Guangxi Tiangui Aluminum, 500 million yuan (76.4 million US dollars) for the ultrahigh purity aluminum phase I and R&D center project of Xinjiang Tianzhan New Material and 1.5 billion yuan (229 million US dollars) for the supplement of working capital and repayment of bank loans.
The alumina project of Guangxi Tiangui Aluminum is a key project of Tianshan Aluminum to extend the resources and raw materials to the upstream of the industrial chain. Guangxi is one of the few areas with abundant bauxite resources in China. After the completion of the project, Tianshan Aluminum will be fully self-sufficient in alumina, which can significantly reduce production costs. At present, the first phase of the alumina project with a capacity of 2.5 million tons has reached the production standard of 800,000t in the first quarter of this year. The raised funds will be invested in the second phase of the project with a capacity of 1.7 million tons, which is under construction and is expected to be put into commercial operation next year.
Another major project to be invested by the raised funds is the ultrahigh purity aluminum phase I and R&D center project located in Shihezi, Xinjiang, with the planned construction capacity of 60,000t. After the completion of the project, Tianshan Aluminum will become the global production base of high purity aluminum.
Tianshan Aluminum reported that the 5 billion yuan (764 million US dollars) includes 3 billion yuan (458 million US dollars) for the alumina project of Guangxi Tiangui Aluminum, 500 million yuan (76.4 million US dollars) for the ultrahigh purity aluminum phase I and R&D center project of Xinjiang Tianzhan New Material and 1.5 billion yuan (229 million US dollars) for the supplement of working capital and repayment of bank loans.
The alumina project of Guangxi Tiangui Aluminum is a key project of Tianshan Aluminum to extend the resources and raw materials to the upstream of the industrial chain. Guangxi is one of the few areas with abundant bauxite resources in China. After the completion of the project, Tianshan Aluminum will be fully self-sufficient in alumina, which can significantly reduce production costs. At present, the first phase of the alumina project with a capacity of 2.5 million tons has reached the production standard of 800,000t in the first quarter of this year. The raised funds will be invested in the second phase of the project with a capacity of 1.7 million tons, which is under construction and is expected to be put into commercial operation next year.
Another major project to be invested by the raised funds is the ultrahigh purity aluminum phase I and R&D center project located in Shihezi, Xinjiang, with the planned construction capacity of 60,000t. After the completion of the project, Tianshan Aluminum will become the global production base of high purity aluminum.
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