Beijing, Jul. 1(Antaike)-On Jun. 28, China First Heavy Industries (CFHI) announced its decision to acquire 38.74% ownership of Zhongpin Shengde International Development Co., Ltd. (Zhongpin Shengde) through 2.39 billion Chinese yuan and finally indirectly held 23% stake in PT. Virtue Dragon Nickel Industry (VDNI) which currently owns 15 RKEF production lines.

Zhongpin Shengde, situated in Singapore, was jointly funded by CFHI (85.19% shares) and Jiangsu Delong Nickel Industry Co., Ltd. (Delong Nickel, 14.1% shares), mainly engaged in process and refining of mining products. Its main assets are 59.37% equity of VDNI and main products are NPI.

Stage 2 of Indonesian Delong NPI project with 35 RKEF production lines is expected to be put into production by the end of 2021, according to Antaike.

Delong Nickel is a stainless steel mill with the highest degree of integration of nickel ore-FeNi-Stainless Steel in China. The company's local stainless steel production almost does not purchase external NPI, while relies on its own NPI production lines. Delong Nickel only produces 300 series stainless steel, which is the biggest difference between Delong Nickel and other large stainless steel mills. With Indonesia's ban on crude ores export, the decline of nickel ore grade in Philippines and the stainless steel capacity expansion of Delong Nickel, the stainless steel melting of Delong Nickel will also rely on NPI of Indonesian Delong project. With the smooth operation of the stainless steel project (OSS) cooperated by Delong Nickel and XMXYG CORP., Indonesian Delong Nickel NPI project also supplies NPI for OSS stainless steel project, and the expansion of NPI production line is also extremely urgent.

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