Citic Dicastal Co., Ltd. Business Report FY ended Dec. 2021
Carbon neutral plan
-The company announced plans to reach carbon peak out in 2025 and achieve carbon neutrality in 2050. Specifically, the following four items will be implemented.
- In terms of materials, the company will accelerate the development of new low-carbon materials and increase the use of recycled aluminum by increasing the usage rate of aluminum produced by hydroelectric power generation.
- In technology, the company aim to reduce weight, save energy, and improve efficiency through means such as accurate product design, equipment improvement, technology improvement, and process optimization.
- On the energy side, the company will increase the proportion of green electricity by utilizing waste heat recovery and waste heat utilization technologies.
- In production, the company will build a low CO2 emission plant modeled after the company's subsidiary, Dicastal KSM Chengdu Auto Parts Co., Ltd., and will aim to reduce CO2 in all processes. (From multiple media reports in July 2021)
Plant construction
-The company implemented the 6th Aluminum Wheel Factory Project. The total investment is CNY 960 million, and the annual production of the base is 3 million wheels. More than 80% of products are high-end models. Compared to the start of operation in 2018, manufacturing cost has been reduced by 33%, equipment efficiency has been improved by 21.4%, product defect rate has been reduced by 20.9%, delivery time has been shortened by 37.9%, and energy efficiency has been improved by 39%. (From multiple media reports in October 2021)
-The company started construction of its “6 Million Custom Wheels Project” at the CITIC South Intelligent Manufacturing Industrial Park in the Wangcheng Economic Development Zone in Hunan Province. The total investment is CNY 5 billion, covering an area of 700 mu (about 470,000 square meters). It will be equipped with manufacturing facilities with annual capacity of 20 million aluminum wheels, high-end facilities, and die manufacturing facilities. The annual production capacity of wheels before the expansion was 9 million units. (From multiple media reports dated December 10, 2020)
-The company started construction of a lightweight automobile parts manufacturing plant in the Economic and Technological Development Zone of Qinhuangdao City, Hebei Province. The total investment is CNY 44,457,300, and the base is located in the western part of Qinhuangdao Development Zone. Prototype lines for Audi parts, differential pressure casting parts, and large automobile parts will be built. The annual prototype production capacity after completion will be 5,594 tons. (From multiple media reports dated September 25, 2020)
Acquisition
-The Company acquired a 9% stake in Dicastal UACJ Bolv Automotive Parts Co., Ltd. owned by UACJ Co., Ltd. (UACJ), and an additional 51% stake through CITIC BOHAI Aluminum Industries Holding Company Limited. Announced to acquire. Dicastal UACJ Bolv Automotive Parts mainly produces industrial aluminum products. After the transaction is completed, the company will directly and indirectly hold 60% of the shares, and UACJ will hold the remaining 40%. (From a press release dated August 20, 2021)
R&D Structure
-The Company conducts development activities at its technical center, which was established in February 1993. The technical center has been recognized as a national R&D center by the National Development and Reform Commission since October 2005.
-The Company has established overseas technical centers in Europe, North America and Japan.
-The Company researches integrated solutions for aluminum wheels and cast components design and manufacturing at its CITIC Dicastal Engineering Technology Institute.
-In 2019, CITIC Dicastal's Process Technology Research Institute was certified as a national industrial design center.
Investment outside China
-The Company started the second phase of production at the company's Morocco production base. The total investment is EUR 350 million and the annual production amount is 6 million units. The first phase started operation in June 2019. (From multiple media reports dated December 31, 2020)
-In June 2019, the first phase of the company's production base in Morocco was put into production, with an annual production capacity of 3 million aluminum wheels. (From CITIC Group's 2019 annual report)