Pangang Group and Sichuan Desheng Sign Vanadium Sales Cooperation Agreement

Recently, Pangang Group Vanadium & Titanium co., Ltd. (Pangang Group) announced that on May 31, 2019, it signed the Cooperation Agreement with Sichuan Desheng Group Vanadium & Titanium co., Ltd. (Sichuan Desheng) in Chengdu, Sichuan. The two sides reached an agreement on the issues related to Sichuan Desheng’s handing over its vanadium products to Pangang Group for integrated sales.

Sichuan Desheng’s annual standard production capacity is 140,000t for vanadium slag, of which Leshan is 100,000t and Yunnan Desheng Iron and Steel Co., Ltd., its subsidiary, is 40,000t. At present, Sichuan Desheng has no production capacity of vanadium pentoxide (flake), vanadium nitride, ferrovanadium. The vanadium slag produced by it is commissioned by other enterprises to process vanadium products for self-sale.

This cooperation covers the vanadium resources of Sichuan Desheng, not limited to the raw materials and final products (cooperative resources) processed by Sichuan Desheng. The company’s wholly-owned subsidiary, Pangang Group Chengdu Vanadium and Titanium Resources Development Co., Ltd. (Chengdu Vanadium and Titanium), formulates the sales plan for external sales in accordance with the company’s marketing management system and sales policy. The specific amount of resources from Sichuan Desheng every month shall be agreed by both sides before 25th of the previous month, the monthly amount of resources in each quarter shall be balanced in principle, and the amount of cooperative resources between the two sides shall be increased as soon as possible until all Sichuan Desheng resources enter the company for unified external sales.