Executive Interviews

Asian Metal: Hello, Mr. Chen. Welcome to our interview. Could you please introduce the basic situation of your company?

Mr. Chen: Zibo Zichuan Jinlong Abrasives Co., Ltd. was established in October 1998. We are equipped with four fused alumina smelting furnaces, three granulation production lines, two micro-powder production lines (using overflow classification technology), two air jet mill granulation lines, and two ball mill production lines. Our annual production capacity reaches 70,000 tons, including 6,000 tons of micro-powder. We are currently one of the most comprehensive domestic producers and exporters of abrasive-grade white fused alumina and chrome fused alumina, offering a complete range of particle sizes and processing methods. From smelting to granulation and micro-powder refinement, we cover the entire production chain and are among the few domestic manufacturers with such a complete process. Our product range includes white fused alumina, chrome fused alumina, chrome single crystal fused alumina, and their respective micro-powders. We also produce specialty materials such as wear-resistant sand for laminate flooring wear-resistant paper. Our products adhere to standards including JIS, FEPA, and P grades, and we offer customized production to meet specific customer requirements. Our products are widely used in various industries, including refractory materials, sandblasting, bonded abrasives, coated abrasives, and polishing. All technical indicators meet or exceed advanced domestic and international standards. We also actively participate in industry development. For example, we were involved in drafting the national standard Common Abrasive White Fused Alumina (GB/T2479-2022) and the group standard 99 Granulation Powder for Alumina Ceramics (T/CEMIA 040-2024). Our achievements have earned us honors such as "National High-tech Enterprise", "Shandong Province Specialized, Refined, Unique and Innovative Enterprise", "Vice Chairman Unit of the Abrasives and Grinding Tools Branch of the China Machine Tool & Tool Builders’ Association", and recognition as a "Famous Product in the Abrasives and Grinding Tools Industry."

Asian Metal: Since the fourth quarter of last year, environmental protection measures in Henan and Shandong have repeatedly led to production restrictions. What steps has your company taken to address this?

Mr. Chen: Since the fourth quarter of last year, extensive environmental inspections in Henan and Shandong have forced most companies—except for a few Class A enterprises—to either halt or reduce production. From October to January, the average operating rate in Henan was 21.54%, while in Shandong it was only 18.88%. To meet environmental requirements, our company has relied on advanced environmental protection systems, including high-efficiency dust removal and wastewater treatment facilities. These systems allow us to maintain very low pollutant emissions while ensuring uninterrupted production. With these measures in place, we have effectively balanced environmental compliance with production efficiency, securing the company’s stable and sustainable development.

Asian Metal: Since the fourth quarter of last year, alumina prices have fluctuated dramatically, placing pressure on manufacturers. How has your company responded?

Mr. Chen: Since early October, the price of alumina rose from RMB4,000/t (USD550/t) to RMB5,800/t (USD798/t) by early December, then dropped sharply after the Spring Festival, falling to RMB2,970/t (USD409/t) as of early this month. These price swings have posed major challenges for production stability and cost control. To address this, we’ve taken several measures. Firstly, we secured long-term contracts with reliable domestic suppliers to ensure consistent raw material supply. Secondly, we implemented a flexible inventory management system to adjust stock levels based on market trends, minimizing the impact of price fluctuations. Thirdly, we optimized production processes to improve raw material efficiency and reduce per-unit costs. We stayed in close contact with customers to adjust supply plans in real time and maintain stable deliveries. These efforts have enabled us to continue supplying customers reliably despite market volatility, earning us their trust and support.

Asian Metal: Alumina prices have been steadily declining since February. What is your market outlook for this year?

Mr. Chen: Since February, alumina prices dropped rapidly from RMB4,110/t (USD565/t) and stabilized at RMB2,870/t (USD395/t) last week. With overproduction still a concern, we expect prices to continue falling in the first half of the year. This decline will likely put downward pressure on white fused alumina prices and intensify competition in the domestic market. However, it will also enhance the global competitiveness of Chinese white fused alumina products by improving their cost-performance ratio internationally.

Asian Metal: Amid intense market competition, what are your company’s key strengths?

Mr. Chen: Our company stands out in several areas. Technically, we continuously adopt advanced technologies to ensure high product quality and reliability, fully meeting diverse customer needs. We've also stepped up R&D, constantly improving performance and user experience, earning a strong market reputation. Maintaining high technical standards is critical to surviving in a competitive market. In 2023, our product Chromium Single Crystal Fused Alumina was widely recognized for its excellent grinding efficiency and durability, and won the “Technological Innovation Award” in the abrasives industry. This year, we plan to further expand R&D into new abrasive products to enhance competitiveness and contribute to industry advancement.

Asian Metal: How is your current export business? What are your future plans?

Mr. Chen: Last year, China produced about 894,000 tons of white fused alumina and exported roughly 445,000 tons. In 2023, output increased to about 1.02 million tons, with exports reaching 410,000 tons. The export ratio has gradually risen from around 40% to nearly 50%, making the international market increasingly important. Our company’s export business is stable, accounting for nearly 50% of our total output. Key export destinations include Germany, France, Japan, the United States, India, South Korea, Saudi Arabia, and Iran. Our customers are spread across Europe, Asia, North America, and the Middle East. With declining domestic production costs, Chinese white fused alumina is now more competitively priced in global markets. We plan to seize this opportunity by strengthening relationships with existing customers and actively expanding into new regions—particularly Southeast Asia and the Middle East. By optimizing product offerings and improving service quality, we aim to boost our market presence and drive steady growth in our export business.

Asian Metal: Thank you for your insightful sharing. We wish Jinlong continued success!

Mr. Chen: Thank you, Asian Metal, for the interview. I wish you all the best in your future endeavors!