Guangdong Orient Zirconic Ind Sci & Tech Company Limited announced that it plans to buy certain assets from Liaoning Province based Chaoyang Baisheng Titanium & Zirconium Company Limited for CNY 120 million.

According to the announcement, Orient Zirconic hopes to buy a number of Chaoyang Baisheng's fixed assets, intangible assets, zirconium sponge related inventories, patents and production technologies. Funding for the transaction will come mainly from the company's cash reserves and bank loans.

Chaoyang Baisheng is a leading Chinese producer of both zirconium and titanium sponge. It has an annual production capacity of 10,000 tons for titanium sponge, 30,000 tonnes for refined titanium tetrachloride and 3,000 tonnes for refined zirconium tetrachloride. It also produces 600 tonnes of industrial zirconium sponge each year and 150 tonnes of zirconium sponge for use in the nuclear industry.

In 2009, Orient Zirconic generated sales revenue of CNY 268 million and net profit of CNY 30.16 million up 40.66% and 19.07% YoY respectively. The company aims to increase both these figures by 50% in 2010.

(Sourced from Interfax China)