Chinese trader Hongtou acquires high stake in smelter Kaimeng
Chinese state-owned concentrate trader Honghe Hongtou Industrial Company has acquired an 80% equity stake in Gejiu Kaimeng Industry and Trade Company, a tin smelter in Yunnan Province, China.
On 15 July, the two companies held a ceremony to sign the Equity Transfer Agreement and a Concerted Action Agreement.
Kaimeng is located in Gejiu, Yunnan, and produces mainly refined tin and tin-lead solder, with an annual production capacity of 10,000 tonnes of refined tin. Its Yunxiang brand of tin ingots is available on both the SHFE and LME.
Yang Yuejin, Chairman of Kaimeng, said the agreement would bolster progress in sourcing of raw materials, enable growth in the company’s market share, and allow for greater business development across a range of areas.
Hongtou Chairman, Yang Zhiwei, praised Kaimeng for its high-quality tin smelting business and good reputation in the industry. Yang Zhiwei also emphasised the importance of the tin industry, particularly concentrate supply, to China as a whole.
The company hopes its acquisition will improve profitability at Kaimeng and strengthen Hongtou’s presence in the tin supply chain. This will make Hongtou a partially integrated industry player, operating from sourcing of raw materials through to sale of refined tin and solder products.
