China Securities News: Changbai Group and Sany Group cooperate to promote the "oil to gas" of the mixing plant

Source: China Securities Journal

Changbai Group announced on the evening of December 24 that its subsidiary Zhongtian Energy and Sany Group signed an investment and construction cooperation agreement on the LNG/CNG filling station project, and planned to supply natural gas for more than 8,000 concrete mixing plants and more than 300 asphalt mixing plants of Sany Group's existing independent brands for the construction of LNG/CNG filling stations.

 
According to the agreement, the two parties will also invest 50% of each to jointly establish a joint venture company, the joint venture company will build 3,000 LNG/CNG refueling stations within 5 years after its establishment, and when the joint venture company builds 3,000 refueling stations, Zhongtian Energy will ensure that the joint venture company has 6 million tons/year of LNG gas supply. The agreement is an exclusive partnership.

It is understood that the number of concrete batching plants in China is about 20,000. The agreement will "convert oil to gas" for more than 8,000 mixing plants, which means that Changbai Group will seize 40% of the "oil to gas" market share of concrete batching plants in the country through cooperation with Sany Group.

Sany Group is one of the leading enterprises in the global equipment manufacturing industry, and took the lead in launching 5,656 LNG units in ChinaMixer trucksAnd to achieve mass production. Industry analysts said that in the context of huge pressure to reduce emissions, Changbai Group and Sany Group have cooperated strongly, conforming to the industrial development trend, which is conducive to accelerating the transformation of the "oil to gas" industry of concrete batching plants and promoting the use of clean energy in the field of construction machinery.

At the same time, the implementation of the construction of the filling station will also establish the industry leadership position of Changbai Group in the LNG/CNG filling station market. Relevant information shows that the number of refueling stations under construction and has been built in China does not exceed 300, and if the plan is successfully implemented, it will completely change the scale and competition pattern of China's current LNG/CNG refueling station industry.

A brokerage researcher said that this cooperation is expected to bring substantial growth to the performance of Changbai Group. According to the agreement, when the 3,000 filling stations are completed, Changbai Group will provide 6 million tons/year of LNG gas supply, which is expected to bring more than 30 billion yuan of annual sales to Changbai Group according to the current price of 6,000 yuan/ton of natural gas.

Last week, Changbai Group just announced that it would join forces with an industrial fund to acquire Canadian oil and gas field assets for no more than $200 million. Industry insiders believe that the real intention of Changbai Group's "going out" strategy may be to open up the gas source link and prepare for the realization of the strategic layout of the whole natural gas industry chain.

At present, Changbai Group has built a CNG production and sales network with Wuhan as the core, a natural gas and new energy equipment manufacturing industrial base with Qingdao as the core, and a natural gas distribution business network based in Zhejiang, Hubei, Jiangsu, Anhui, Guangdong, Fujian and other places.