Securities code: 002545 securities abbreviation: Qingdao East Steel Tower Stock Co.Ltd(002545) Announcement No.: 2022-005 Qingdao East Steel Tower Stock Co.Ltd(002545)
Announcement on the progress of potassium chloride expansion project of overseas wholly-owned subsidiary
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.
1、 Basic information of production expansion project
Qingdao East Steel Tower Stock Co.Ltd(002545) (hereinafter referred to as “the company”) held the eighth meeting of the seventh board of directors and the first extraordinary general meeting of shareholders in 2020 on August 19, 2020 and September 7, 2020 respectively, and deliberated and adopted the proposal on the company’s non-public offering of shares in 2020 and other proposals related to the company’s non-public offering of A-Shares in 2020. It is proposed to raise 70 million yuan for the “phase I project of 1.5 million tons of potassium chloride project (500000 tons) of potassium magnesium salt mine in Gambang Province, Laos” (hereinafter referred to as “potassium chloride production expansion project” or “the project”). The implementation subject of potassium chloride expansion project is Laos Kaiyuan Mining Co., Ltd. (hereinafter referred to as “Laos Kaiyuan”), an overseas wholly-owned subsidiary of the company. The project will increase the production capacity of Kaiyuan potassium chloride in Laos by 500000 tons / year, with a total investment of about 1.917 billion yuan. The project construction mainly includes mining engineering, filling engineering, beneficiation device, mother liquor evaporation device, drying, packaging, storage and transportation device, thermal power station, auxiliary facilities, external water supply project, etc. After the project is completed, the production capacity of Kaiyuan potassium chloride in Laos will be increased from 500000 T / A to 1 million T / A.
After deliberation at the 19th meeting of the 7th board of directors of the company, the proposal on terminating the non-public development of shares in 2020 was passed, and the company terminated the above refinancing matters. The company will continue to promote the construction of potassium chloride expansion project with its own or self raised funds according to the actual situation.
2、 Progress of production expansion project
On December 31, 2021, the commencement ceremony of the aboveground construction project of “potassium chloride expansion project” was held. In addition to the underground construction project already started at the end of July 2021, the project of “phase I project of 1.5 million tons of potassium chloride project (500000 tons) of potassium magnesium salt mine in Gambang Province, Laos” has been fully launched.
The construction period of “phase I project of 1.5 million tons potassium chloride project (500000 tons) of potassium magnesium salt mine in GanMeng Province, Laos” is about 1 to 1.5 years. The company will dynamically adjust the implementation progress of the project according to the actual demand.
3、 Project impact and risk tips
The smooth construction of the project indicates that the company’s potassium chloride product capacity can be increased to 1 million tons per year, further promote the transformation and upgrading of the company, consolidate the strength of potassium fertilizer business, further enhance the core competitiveness of the company’s dual main business, and is conducive to the improvement of the company’s future performance.
The construction site of the project is located in Laos. It will take a certain period for the project to reach full production and realize economic benefits. During the construction period, the project may be affected by risk factors such as repeated overseas epidemic, tense international political and economic situation, and fluctuations in the price of potash bulk commodities. Please pay attention to the investment risks.
The company will continue to pay attention to the progress of the project. When the project makes further phased progress, the company will timely disclose the follow-up progress in accordance with relevant regulations. The information disclosed by the company is published in China Securities Journal, securities times and cninfo (www.cn. Info. Com.. CN.) The announcement on the shall prevail. Please pay attention in time.
It is hereby announced.
Qingdao East Steel Tower Stock Co.Ltd(002545) board of directors
January 3, 2022
