China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
China’s Zhejiang Huayou Cobalt said on Tuesday it will invest in a $200 million nickel sulfate project in Indonesia, expanding its production of the key battery raw material.
Huayou subsidiary Huayao International Investment will build the 50,000 metric ton project in a joint venture with Singapore-based Strive Investment Capital and Lindo Investment PTE, according to the Chinese company.
One of the world’s top battery material makers, Huayou has been expanding its capacity in ternary precursors and cathode materials both at home and overseas, said Susan Zou, a Shanghai-based vice president at Rystad Energy.
“This is a strategic move to expand into the upstream supply chain for its product,” she said.
The joint venture will be called Huaxiang Refining Indonesia, according to the company.
Huayou also said on Tuesday that its mining unit Huayou International Mining plans to buy a 50.15% stake in privately owned Perlux Limited for $200.4 million.
The deal will give Huayou ownership of two ferro-nickel production lines in Indonesia with annual output of 24,000 metric tons nickel content, it said.
Huayou, a leading producer of nickel and cobalt, is also stepping up investment in lithium and commissioned a $300 million lithium plant in Zimbabwe earlier this month.
(By Siyi Liu and Dominique Patton; Editing by Louise Heavens)
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