On November 23rd, Lubei Chemical announced that its wholly-owned subsidiary, Shandong Xianghai Titanium Resources Technology Co., Ltd., intends to increase the capital of Inner Mongolia Yuxiao Mengda Titanium Industry Co., Ltd. with its own funds of 33.6444 million yuan. After the capital increase is completed, Xianghai Technology will hold a 10% stake in Mengda Titanium Industry.

The announcement shows that Mengda Titanium Industry is an important titanium enterprise with advanced production technologies. This capital increase, on the one hand, can achieve the equity binding between the company and upstream titanium ore resources to stabilize the raw material supply of the company; on the other hand, through increasing the capital of Mengda Titanium Industry, it will further promote the coordinated development of the upstream and downstream of the industrial chain, realizing the industrial transformation and upgrading as well as sustainable development.