China Northern Rare Earth completes acquisition of Gansu Rare Earth
2017-08-24 17:14:39 [Print]
China Northern Rare Earth announced on 26 July to acquire some equities of Gansu Rare Earth New Material Limited Liability Company (hereinafter referred to as Gansu Rare Earth) and becomes the controlling shareholder of the company. After the integration, China Northern Rare Earth improves the controlling ability of rare earth resources and separation and smelting of the resources, consolidating the leader position in the rare earth industry. The industrial concentration of rare earth will be further promoted in North China, and resource allocation, market shares, industrial position and economic aggregate will be strengthened.
China Northern Rare Earth, with the self-owned fund of RMB1.344 billion, acquires 28.52%, 9.29% and 6.54% of equities in Gansu Rare Earth respectively from Gansu Rare Earth Golden Panda Rare Earth Co., Ltd., Gansu Rare Earth State-owned Asset Investment Group Co., Ltd. and Gansu Industrial Transportation Investment Co., Ltd., and holds a total of 49.35% of equities in Gansu Rare Earth after the acquisition, becoming the controlling shareholder of the company, coupled with 5% of equities it held previously,.
Gansu Rare Earth is a domestic major rare earth enterprise, with production scale ranking in the top. It was reformed from the previous 903 Plant of original company, Gansu Rare Earth Company, and has an annual processing capacity of 30,000t of rare earth concentrate (corresponding to 15,000t of rare earth oxide) with raw material mainly from China Northern Rare Earth. It has developed an integrated industrial chain of rare earth new material from smelting and separating of rare earth to fluorescent material, permanent magnet material, hydrogen storage material and abrasive material, with capacity for rare earth metals, abrasive material, hydrogen storage materials and permanent magnet material reaching 2,500t, 2,500t, 1,200t and 2,000t respectively. Gansu Rare Earth achieved the operating income of RMB1.228 billion in 2016.
China Northern Rare Earth, with the self-owned fund of RMB1.344 billion, acquires 28.52%, 9.29% and 6.54% of equities in Gansu Rare Earth respectively from Gansu Rare Earth Golden Panda Rare Earth Co., Ltd., Gansu Rare Earth State-owned Asset Investment Group Co., Ltd. and Gansu Industrial Transportation Investment Co., Ltd., and holds a total of 49.35% of equities in Gansu Rare Earth after the acquisition, becoming the controlling shareholder of the company, coupled with 5% of equities it held previously,.
Gansu Rare Earth is a domestic major rare earth enterprise, with production scale ranking in the top. It was reformed from the previous 903 Plant of original company, Gansu Rare Earth Company, and has an annual processing capacity of 30,000t of rare earth concentrate (corresponding to 15,000t of rare earth oxide) with raw material mainly from China Northern Rare Earth. It has developed an integrated industrial chain of rare earth new material from smelting and separating of rare earth to fluorescent material, permanent magnet material, hydrogen storage material and abrasive material, with capacity for rare earth metals, abrasive material, hydrogen storage materials and permanent magnet material reaching 2,500t, 2,500t, 1,200t and 2,000t respectively. Gansu Rare Earth achieved the operating income of RMB1.228 billion in 2016.
