On October 27th, Qinghai Salt Lake Industry Co., Ltd. (“Salt Lake Co., Ltd.”) issued an announcement that the company’s wholly-owned subsidiary Qinghai Salt Lake Teli Magnesium Co., Ltd. (“Teli Magnesium”) intends to locate in Hanshan County, Ma’anshan City, Anhui Province. Invest in the development and application of new materials of magnesium and aluminum alloy with an annual output of 5000T.
It is understood that the project is implemented by the wholly-owned subsidiary of Teli Magnesium-Anhui Salt Lake Teli Magnesium New Material Co., Ltd. (“Anhui Teli Magnesium”). The total investment of the project is 49.8605 million yuan, of which 29.12 million yuan is used to purchase equipment. After the project is completed, it will have an annual production capacity of 5,000 tons of magnesium and aluminum alloy die castings. Anhui Teli Magnesium has a registered capital of 50 million yuan and is mainly engaged in the processing of metal magnesium, magnesium alloy, metal aluminum, and aluminum alloy products, and the research and development, design, production and sales of light alloy precision die castings such as aluminum alloy and magnesium alloy.
Regarding the construction of this project, Salt Lake Co., Ltd. stated that in order to solve the development dilemma, Teli Magnesium will integrate into the core area of the industry to resolve the geographical disadvantages far away from the customer’s market, and achieve a turnaround as soon as possible. The company plans to lay out the magnesium industry chain by building factories in different places, and coordinately drive the existing production equipment in Qinghai, improve the entire industry chain of magnesium alloy production, reduce production costs, realize a virtuous cycle, and improve corporate efficiency.