High-Purity Iron Business
In the first half of 2019, the Company completed the acquisition of the high-purity iron business from its controlling shareholder and became the largest supplier of wind power ductile casting iron in China. The high grade and low impurity content which contains close to zero titanium, iron ore concentrate produced by the Group is a quality raw material for producing ductile casting iron. Leveraging this advantage in terms of mineral resources, Fushun Hanking D.R.I. has established a product mix that mainly comprised of wind power ductile casting iron products, supplemented by other ordinary ductile casting iron products. After acquisition of the high-purity iron business, the Group’s industrial chain has extended into the field of ductile casting iron, and the value of the high-quality iron ore concentrates produced by the Group has been enhanced.
According to the industry report prepared by Hatch Associates Ltd., Fushun Hanking D.R.I. is the largest wind power ductile casting iron manufacturing enterprise in China with the sales volume of its main product, wind power ductile casting iron, accounting for over 50% of China’s total output. With the technological improvement, the annual production capacity of Fushun Hanking D.R.I. increases from 560,000 metric tons to 660,000 metric tons.