About Us
- About Us
- The Development Of Science And Technology Platform
- The Talent System
- Product System
- Energy Conservation And Emissions Reduction
- Industry Structure
- Capital Operation And Internationalization
Strengthening the controlling force between domestic and international markets.
By expanding main business routine between “related industry” and “related technology”, Lonsen successfully created a complete circular economy industrial chain in the fields of dyestuff, fine chemical intermediates, water reducing agent, inorganic chemical products. The disperse dyes is occupying 38% of domestic market share,and 20% of international share; the reactive dyes is occupying 20% of domestic market share; the annual output of M.P.D is ranking first in the world, dominating the market with 80% domestic share, and 50% international share. Among the international competition, Lonsen successfully acquired Dystar which is one important part of internationalization. Dystar owns more than 30 production and sales equities, 7000 customers, and almost 21% international market share. With the continuously expanding of industry scale and market share, Lonsen strengthens its global control in dyestuff, intermediates and bargaining power in purchasing, making itself as the world largest textile chemicals manufacturer and service provider.
Exploring to Change the way of patterns of profit models
With many years’ technology development and management innovation, Lonsen owns the advantages in Production cost control and quality control, the most excellent production platform in China. However, while comparing with the advanced foreign enterprise in brand and sales service network building, the gap is obvious. With the exploration of industrial internationalization, especially the acquisition of Dystar, Lonsen broadens its horizon, accumulates resources and talents. Lonsen not only steps into a new stage in the layout of production system, but also starts new exploration in profits models. From strong manufacturer to strong service and marketing, Lonsen changes the situation of low profit among traditional dyestuff industries by increasing independent innovation, brand, service quality and added values of products.
Capital Operation
Having listed in the market, Lonsen seizes the right way to do financing in the right time. With the capital from the market, Lonsen not only expands its assets quickly, but also ensures the enough capital to extend the industry chain. Therefore, without the capital market, Lonsen cannot develop; the capital market is the key to the high speed development of list companies.
Listed in the stock market----While strengthening the leading position in disperse dyes, Lonsen also expands the business in the reactive dyes and Intermediates.
In July, 2003, “ZheJiang Lonsen” successfully listed in the A shares,which is the first dyestuff manufacturer listed in the stock market. The raised fund of actual net 466,475,04.23 Yuan, which was used for the project of low pressure liquid phase catalytic hydrogenation method to produce M.P.D with annual out 15,000 tons; technological transformation of polymerization M.P.D by distillation method with annual output 3,000 tons; and reactive dyes with annual output 15,000 tons.
Issuance of increasing A shares ------Lonsen continuously expands the business in the Intermediates and water reducing agent.
In 2007, “ZheJiang Lonsen” successfully finished the issuance of increasing A shares, raising fund of actual net is 111,648.17million Yuan. The Funds was used for products technical transformation project of aromatic amines with annual output 70,000 tons, acquisition of ZheJiang LongHua project, high efficiency water reducing agent project with annual output150,000 tons, and sewage treatment project with 15,000 tons daily processing.The raised fund was used in the field of intermediate such as aromatic amines,reactive dyes, and water reducing agent, which all have enjoyed high speed development recent years. Having finished all the projects, Lonsen will have better revenues.
In 2009,”ZheJiang Lonsen” successfully issued the convertible bonds, and raised the fund of actual net 122,750 million Yuan, which was used for the whole relocation project of HangZhou LongSan Chemicals Co., Ltd., and Cogeneration of resorcinol and m-aminophenol of ZheJiang HongSheng.
Expanding industrial chain and “going out” Strategy
(1) Establish the operation platform overseas. In October, 2004, Lonsen invested $ 16 million to establish HongKong Well Prospering Limited, which was mainly on trade and investment. As the Lonsen’s overseas operation platform, Well Prospering Limited was the international capital operation and talents pool.
(2) “Joint Operations” In April,2005, Lonsen cooperated with one of the World Top 500 enterprises--Itochu Corporation from Japan, established ZheJiang HongSheng Chemicals with the annual output of 300,000 Sulfuric acid. The cooperation between Lonsen and ItoChu, on the project itself, using the international advanced HRS heat recovery system at that time without any emission of waste water and discards , meanwhile with output of 500,000 tons streams and 12million Kwh electricity, it became the “energy engine of Lonsen Science and Technology industrial park. On the way to internationalization, Lonsen was exploring its way on the international road. By the cooperation with world-class advanced enterprise, Lonsen has the opportunities to learn international advanced technology and modern management experience, meanwhile, it can also lay the foundation of overseas operations and accumulate the experience.
(3)”Transnational Construction”. Details: cooperate with Kiri Chemicals which is one of the largest reactive dyes manufacturers in India to build largest reactive dyes factory in India. In September, 2007, Lonsen Group and Kiri Chemicals established strategic cooperation relationship. The Joint Venture Lonsen Kiri Chemicals was founded. On July 20th 2009, The Lonsen Kiri started to produce, making itself as the largest reactive dyes manufacturer. It is also a breakthrough that Chinese Dyestuff manufacturer to realize international management.
(4)” Mergers and acquisitions”. In April 2008, Losen successfully acquired ZheJiang LongHua Group with 0.43 billion yuan, quickly involved in the field of inorganic chemicals, and effectively extend the industrial chain. At present, with the total investment 1.5 billion Yuan, the 1st project of LongHua relocation project came to produce in 2011, and the 2nd project will be finished at the end of 2012. LongHua will have the annual output of 200,000tons synthetic ammonia, 400,000 tons soda ash and 100,000 tons concentrated nitric acid.
(5)”Transnational Acquisition”. On January 31, 2010, Lonsen , Kiri Singapore and Kiri India etc. signed the agreement of share and Convertible bond subscription, which meant that Lonsen acquired the world’s largest dyestuff, textile auxiliary and service provider-----a German company Dystar. Dystar is the world’s largest dyestuff manufacturer, occupying 21% share of the world market, and it can fully provide dyeing solutions, high performance chemicals and produce customized dyestuff and pigments. Dystar has sales and technology support in all the key markets. Lonsen’s acquisition included Dystar fixed assets, stocks, patents, intellectual property, trademarks, internal receivables in Germany together with equities of subsidiaries in 22 countries .
