Shenzhen Capital backs Chinese titanium metal producer

Shenzhen Capital contributed CNY 900m while a further CNY 400m came from a new materials fund established by China National Building Material, a centrally controlled state-owned enterprise. The company said in a statement that, following the round, it planned to pursue an IPO.

National Titanium Metal produces titanium sponge, a basic industrial titanium material used as a non-ferrous metal additive in titanium ingots and other products. 

One of the most corrosion-resistant structural metals, titanium is often referred to as space metal given its relevance to the aerospace industry. National Titanium Metal noted that demand for high-quality titanium sponge would rise as China pushes forward with high-end manufacturing projects, such as the Comac C919 airliner, which recently entered commercial passenger service.

LB Group entered the titanium metal industry in 2019 through the acquisition of Yunnan Xinli Titanium. It consolidated all titanium businesses under National Titanium Metal to enhance the specialisation and scale. The product portfolio spans titanium ore and titanium sponge, while annual production capacity lept from 10,000 tons in 2019 to 50,000 tons in 2022. The company now claims to be the global leader.

LB Group approved the introduction of strategic investors to National Titanium Metal in March. The parent company generated CNY 2.46bn in revenue and CNY 385m in net profit in 2022, according to its annual report. National Titanium Metal was one of the top three profit contributors.

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• Topics
• Greater China
• Industrials
• Expansion
• China
• Shenzhen Capital Group
• manufacturing