Continue to deploy new materials, China Zhongji Investment completed an equity investment in "Zhongtai Equipment"
Recently, China Zhongji Investment completed an equity investment in Shenyang Zhongtai Equipment Manufacturing Co., Ltd. (hereinafter referred to as "Zhongtai Equipment"). Zhongtai Equipment is a leading domestic provider of special titanium and titanium alloy materials, components, and lightweight overall solutions, focusing on high-end manufacturing in the national defense industry, rail transit, and civilian industries.
Established in September 2016 and headquartered in Shenyang, Liaoning, Zhongtai Equipment's project development team has been researching titanium alloy materials since 2002. It currently possesses the only complete industrial chain production system for titanium and titanium alloy components in China, establishing ten production systems: "melting, forging, rolling, heat treatment, sheet metal, pipe, wire, welding, precision machining, and assembly." This has resulted in the ability to produce a full range of products and a significant competitive advantage.
Zhongtai Equipment emphasizes technological innovation. Its independently developed low-cost, high-strength HST2425 titanium alloy is 20% lower in price and 20% higher in overall performance compared to TC4, making it widely applicable in the national defense and rail transit industries. Its independently developed high-end titanium alloy thin-walled profiles can replace imported products and are suitable for mass production.
Currently, Zhongtai Equipment's main business is divided into military and civilian sectors.
In 2005, the Zhongtai Equipment team began to participate in the development of military products. Relying on excellent product performance and a strong military background, it has now comprehensively covered a wide variety of products for the army, navy, and air force. Its core business focuses on army equipment, tanks, troop carrier components, smart munitions, instruments, and artillery components. The company has jointly participated in and completed the project approval and acceptance of several national-level naval and air force projects. Current main products include lower control arms and hinges.
In the civilian sector, since the China Railway Group's investment in 2017, Zhongtai Equipment has collaborated with several units, including CRRC Changchun Railway Vehicles, CRRC Qingdao Sifang, and Zhuzhou Institute, on the research and development and trial production of key core components for high-speed rail bogie systems, coupler systems, motor systems, and braking systems, all with good progress. Additionally, Zhongtai Equipment is also involved in civilian products such as medical rods and titanium spectacle frames.
Zhongtai Equipment's product research and development adopts a customized model driven by customer needs, cooperating with downstream enterprises for joint development. This not only enriches industrial application practices but also provides the company with reliable technical support. Currently, there are nearly 100 projects being tracked and cultivated in both military and civilian sectors.
Wu Fushun, Partner and Managing Director of China Zhongji Investment, stated that titanium alloys have significant characteristics of lightweight, high strength, and corrosion resistance, with great potential for future substitution. After years of effort, Zhongtai Equipment's technology and products have been widely recognized by the military. Zhongtai Equipment's full industrial chain production system and private enterprise nature allow it to provide customers with more comprehensive and complete technical and product solutions at a higher cost-effectiveness. Extensive and in-depth cooperation with industry peers (1+N model) also creates more possibilities for Zhongtai Equipment and brings more performance growth points. We are optimistic about the future high-speed growth of Zhongtai Equipment and look forward to future cooperation with more new material companies and industry peers to promote the healthy and rapid development of the industry.
