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According to Chen Wenxing, general manager of the company, in the first half of this year, the company overcame the influence of bad weather and the operating rate reached 100%. Especially since May, the high degree of prosperity of the downstream tire industry has led to strong demand for the company's products. Although the overall production capacity of the domestic carbon black industry is still excessive, the competition is still very fierce, but due to the serious shortage of operating rates of many small businesses, the black cats rely on Comprehensive advantages come to the fore.
The semi-annual report issued by Longxing Chemical Co., Ltd., which is also a carbon black leader, also showed that in the first half of the year, the company achieved a total operating revenue of 599 million yuan, an increase of 41.1% year-on-year; and a main business profit of 52.349 million yuan, a year-on-year increase of 132.57%. The company stated that it has gradually emerged from the impact of the financial crisis and its main business profitability has been restored.
According to Chen Wenxing's analysis, at present, the country is actively promoting industry consolidation, and the newly approved approval level for carbon black plant production capacity has been raised to 60,000 tons/year, and it is required to have exhaust gas power generation and other comprehensive utilization systems, making it difficult for small businesses to bear. Tire companies also need to maintain long-term partnerships with large-scale carbon black companies to obtain stable quality raw materials. Therefore, after the completion of the integration, the small carbon black companies will lose the foundation for survival, leading companies will usher in opportunities for mergers and acquisitions.
In the first half of the year, carbon black companies have implemented a series of energy expansion projects to further highlight their comparative advantages.
Black Cat said that the company’s production capacity is in a period of rapid expansion this year, and the fourth 40,000-ton/year carbon black production line of Wuhai Base has been put into production in early June. The commissioning of the 4 40,000-ton/year carbon black production line and the 30 MW exhaust gas power generation project resulted in a production capacity of 160,000 tons/year of carbon black, which has become an important driving force for the growth of Black Cat's shares. Black Cat also entered the coal tar production field and extended its industrial chain. On May 16 of this year, the 300,000 tons/year coal tar deep-processing project with a total investment of 220 million yuan was started. It mainly supplies raw material oil for carbon black production, and produces by-products such as light oil, phenol-free phenol oil, and industrial naphthalene. Wuhai black cat carbon black raw material, stable supply, improve product quality, but also reduce costs.
Chen Wenxing said that the company's new projects are all planned to be completed and put into operation by the end of this year. After the completion of the company's scale advantages will be more obvious, and accelerate the expansion of the southwest and northwest regions, and strive to achieve 700,000 tons / year of production capacity in 2012. On July 9, Black Cat announced again that it intends to issue 70 million shares to specific investors. The raised capital of 450 million yuan will be increased by the subsidiary Black Cat Carbon Black Co., Ltd., which will be used to build 160,000 tons of carbon annually. The black production base and the 2 × 15 MW carbon black tail gas power generation device will achieve annual sales income of 1.048 billion yuan. The carbon black base has started construction in the first half of the year.
Longxing Chemical stated that with the full implementation of the fund-raising project, the production capacity of Longxing Chemical will increase from 180,000 tons/year to 300,000 tons/year within the next 15 months, and the capacity expansion will be 67%. This will further increase the company's profitability and position in the carbon black industry.
Increased threshold of carbon black industry makes it difficult for small businesses to survive>
Jiangxi Black Cat Black Co., Ltd. produced a good transcript in the first half of this year. The 2010 semi-annual report released by the company shows that Black Cat’s operating income was 1.42 billion yuan, an increase of 86% year-on-year; net profit was 31.43 million yuan, an increase of 75.98% year-on-year.
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