Fangda Carbon invested 2.7 billion yuan to build a graphite electrode production line with an annual output of 100,000 tons.

On the evening of April 27th, Fangda Carbon (600516) announced to invest construction of 100000 tons/year ultra-high power graphite electrode production line project in Red Ancient district, Lanzhou city, Gansu province investment. The project total investment is 2.7 billion yuan, which includes 2 phase implementations.

On April 26, according to the announcement, the large carbon and Lanzhou red ancient district people's government, Shanghai baosteel chemical co., LTD. (hereinafter referred to as baosteel chemical) signed the 100000 tons/year ultra-high power graphite electrode production line construction project investment framework agreement. Agreement, the specific project construction implementation by baosteel chemical and carbon joint venture, set up has the qualifications of independent legal representive.it is also the project company as the principal part of the construction of inherit the rights and obligations between the parties.

Learned, baosteel chemical as a wholly owned subsidiary of baosteel co., (600019), located in metallurgical coal chemical industry to the transformation of new carbon material development, steadily building graphite material, carbon fiber and polyester material new carbon materials such as industrial chain. As of December 31, 2017, total assets of 5.6 billion yuan, tar processing 1.65 million tons, 350000 tons of crude Benzol processing, 240000 tons of carbon black, the production capacity of 350000 tons of modified asphalt, tar processing capacity international ranked second, ranking the first in China.

Since early 2017, benefit from electric arc furnace to replace DeTiaoGang clamp down on demand, as well as environmental protection limit production, production cycle, the supply of raw material supply limit three bottlenecks, causing graphite electrode surface of supply and demand continued tight, related products increases speed and amplitude exceed market expectations, graphite electrode prices once or ten times more than last year. Under this background, the 2017 square large carbon achieve business revenue of 8.35 billion yuan, up 248.62% from a year earlier. Implement belonging to shareholders of listed companies net profit of 3.62 billion yuan, up 5267.65%;Buckle not belonging to shareholders of listed companies after the net income of 3.496 billion yuan, up 17573.71% from a year earlier.

According to China securities research report published this year, the big carbon as a leading industry, the production operation stability, and the production base is located in outside the scope of their production of environmental protection, benefit from the product price rise last year earnings significantly improved; Tight industry supply and demand structure with graphite electrode products prices rise sharply, the company's performance improved significantly. Despite the recent fundamentals of supply and demand fluctuations, but the product price and profit still remain high.

Now the annual output of 100000 tons of graphite electrode production line of the framework agreement signed, aims to realize the resource integration, complementary advantages, in line with the company's main business development strategy planning; Framework agreement on project involved in the future if you can fall to the ground, project construction and operations will be on the company's annual business performance have a positive impact in the future.

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