Azure Corporation to invest RMB5 billion for AH cylindrical battery production lines

The project will be in two phases, with an investment of 2.35 billion yuan in the first phase.

Recently, Azure Corporation signed a local lithium energy industrialization project investment agreement with the local Qingjiang Pu District government in Huaian City, Jiangsu Province.

It plans to invest in the construction of a high-efficiency new-type lithium-ion battery industrialization project in Huai’an Qinghe Economic Development Zone. The total investment of the project is planned to be 5 billion yuan and a new 4 billion AH cylindrical lithium battery industrialization project.

The project will be in two phases, with an investment of 2.35 billion yuan in the first phase.

The project will be executed by the company or its newly-established holding subsidiary Huaian Tenpower Lithium Energy Co., Ltd., the name of which is provisional and subject to official commercial registration.

Azure Corporation stated that given the ternary lithium battery business has become the most important business and the booming market demand, insufficient production capacity has affected its customer service And business development.

According to its development plan, it will further focus on the lithium battery industry and accelerate production and projects under construction.

The signing of this agreement is conducive to accelerating the production capacity for the company’s long-term development.

Lithium battery business produces the largest profit

In April 2016, Jiangsu Aucksun entered the lithium battery industry through the acquisition of Jiangsu Green Right Lithium Energy Co., Ltd., covering three major businesses of metal logistics, LED and lithium batteries.

In November 2020, Jiangsu Aucksun issued an announcement stating that it plans to change the company’s name to Azure Corporation.

It mentioned that the reason for the name change is that the lithium battery business has become the company’s largest source of profit and the largest growth driver.

Azure Corporation stated that cylindrical lithium batteries can be used in most fields such as tools and automobiles. The company’s lithium batteries are currently mainly used in electronic tools, some scooters, and cordless products.

The company is a leading company in the power tool lithium battery segment, and its lithium battery business has maintained continuous growth, the company said.

On the evening of February 8, Azure Corporation released its first annual performance report after the name change:

In 2020, the company’s operating income was 4.234 billion yuan, a year-on-year increase of 21.63%; the net profit attributable to shareholders of listed company was 278 million yuan, a year-on-year increase of 136.33%.

Among them, the lithium battery business achieved operating income of 1.447 billion yuan, a year-on-year increase of 49.97%, and realized net profit of 267 million yuan, a year-on-year increase of 137.87%.

The announcement materials mentioned that Tenpower, a wholly-owned subsidiary of Azure Corporation, has more than 10 years of accumulation of R&D and manufacturing experience in the field of ternary cylindrical power batteries. It has the top-level automated production lines and large-scale production lines at home and abroad, especially in the field of electric tools.

It has a stable cooperative relationship with internationally renowned brands such as BOSH, Stanley Black & Decker, TTI and Dongcheng, Dayi and other domestic first-echelon tool manufacturers.

Tenpower has multiple automated production lines of 200PPM. The company’s new 21700 and 18650 compatible battery production line was put into production in the fourth quarter of last year.

In order to solve production capacity issue, Azure Corporation will continue to expand its production line based on the current production capacity of Tenpower. It is estimated that the annual production capacity of new lithium batteries will exceed 300 million. It is planned to commission extra production capacity in the third quarter of 2021.

After the completion of the project, the annual production capacity of Tenpower’s lithium battery will reach 700 million, and the advantage of production scale will be further strengthened.

According to reports, in 2021, Azure Corporation will advance the construction of lithium battery production projects and achieve a sales growth of more than 70% of lithium batteries.

At the same time, the company will also speed up building Zhangjiagang city’s second lithium battery plant, and plan the construction of the third plant.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2021/03/05/azure-corporation-to-invest-rmb5-billion-for-ah-cylindrical-battery-production-lines/.

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