In December 2022, Jinchuan Group completed the acquisition of 51.83% of the shares of Jinchang Cement Group held by the State-owned Assets Supervision and Administration Commission of Jinchang. Since then, Jinchuan Group has realized its controlling interest of Jinchang Cement.
The acquisition of the municipal building materials company by a provincial nonferrous enterprise is a major event in the development history of Jinchang. Relying on the development of nonferrous metal mining and smelting, the supply chain of the Jinchang chlor-alkali chemical industry chain, involving both Jinchuan and Yongchang, will be more complete and stable.
Jinchang [Photo provided to en.jnmc.com]
Jinchuan Group has had a long cooperative relationship with Jinchang Cement. Jinchang Cement is a backbone company of the cement industry in Gansu province, and an important production base of building materials and chemicals in Jinchang. At present, it has three industrial sectors, namely, cement building materials, the chlor-alkali chemical industry and the ammonia alkali chemical industry. Its main production system operates well and stably. In 2022, its output value reached 2.77 billion yuan (about $413 million), up 6.62% year-on-year, and profits and taxes reached 291 million yuan, up 24.36% year-on-year.
As the leading enterprise in China's nonferrous industry, Jinchuan Group has been accelerating its transformation to new energy and new materials while continuing to promote the green upgrading of traditional industries, such as nickel, copper, cobalt, platinum group precious metals, and striving to build a modern industrial system and new material industry pattern.
Jinchang Cement [Photo provided to en.jnmc.com]
Since the establishment of Jinchang Cement, the two sides have built a close relationship of high dependence, mutual benefit and symbiosis. At present, 70% of cement, 100% of acetylene and 60% of soda ash from Jinchang Cement are supplied to Jinchuan, and solid waste, such as fly ash and desulfurized gypsum, produced in Jinchuan are disposed of by Jinchang Cement.
Based on the principle of coordinated development, the two sides have respectively constructed supporting projects, such as PVC and acetylene, and built up the corresponding industrial chain. Upon integration, the production system of calcium carbide and acetylene of Jinchang Cement will be further integrated into the chlor-alkali chemical industry chain of Jinchuan Group, realizing integrated operations and becoming the raw material source of PVC production equipment. The circular industrial chain of "acetylene - PVC - carbide slag - dry cement of Jinchang Cement - Jinchuan Group mine underground filling" will be fully connected.
Li Shangyong, general manager and deputy Party secretary of the CPC Jinchuan Group committee, pointed out that this acquisition is an exploration of Jinchuan in being the main enterprise of the chlor-alkali chemical industry chain in Gansu province. “The integration of the two enterprises will help to further improve the existing circular economy industrial system and improve its efficiency. It will also help the overall planning and promote the emergence of a new industrial chain," said Gan Xianfu, chairman of Jinchang Cement. The output value of Jinchang Cement in 2023 is expected to exceed 3 billion yuan, and the output of calcium carbide is expected to exceed 300,000 tons.
Jinchang Cement [Photo provided to en.jnmc.com]
In recent years, based on the chlor-alkali chemical industry, Jinchuan has led related chemical industries in the chain to jointly build a stable circular economy network.
At present, the chlorine gas of the 200,000 t/a ionic membrane caustic soda project can meet the needs of surrounding units and Jinchuan. Jinchuan Group Chemical Co., Ltd. has completed the construction of caustic soda phase II project and subsequent 60,000 t/a PVC project, and activated the 200,000 t/a ionic membrane caustic soda project and the 200,000 t/a PVC and 100,000 t/a potassium sulfate idle assets. At present, Jinchuan Group Chemical is actively carrying out the development of and research on the comprehensive utilization of chlorine resources, the fluorine chemical industry, calcium carbide acetylene and other industries.
Through a series of actions in the chemical industry of Jinchuan Group Chemical, a total of 580 new jobs have been created, and the annual operating income hit 3.72 billion yuan in 2022, with remarkable economic and social benefits.
The integration of Jinchang Cement and Jinchuan Group Chemical and the establishment of a continuous, complete and systematic production and operation management system are of significant practical significance for deepening the cooperation between local enterprises and driving the high-quality development of the local economy and society. Wang Yongqian, Party secretary of the CPC Jinchuan Group committee and chairman of Jinchuan Group, pointed out that Jinchuan will focus on the construction of an independent, safe and efficient industrial chain and supply chain, and comprehensively accelerate the building of a world-class enterprise.
