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DFP to Invest RMB 2 Billion in Battery Separator Film Project

published: 2023-02-20 9:30

Chinese printing company DFP announced on January 30 that its holding subsidiary Bosheng Advanced Materials will be setting up a base in the Loudi Economic and Technological Development Zone for the development and manufacturing of materials used in Li-ion batteries that are equipped in EVs and energy storage systems. Bosheng New Energy, which is a wholly-owned subsidiary of Bosheng Advanced Materials, will be in charge of building the base. The total investment in this project is estimated around RMB 2 billion. The Loudi Economic and Technological Development Zone is located in China’s Hunan Province.

Bosheng Advanced Materials specializes in battery separator films and is one of the few Chinese companies that are capable of mass producing 12μm dry separator films. Currently, Bosheng already has two main research and manufacturing bases in China. One is located in Loudi, and the other one is located in Yancheng (China’s Jiangsu Province). Its separator films are mainly used in Li-ion batteries that are incorporated into EVs and energy storage systems. Bosheng’s clients include the major Chinese battery suppliers such as BYD, CATL, Ganfeng Lithium. In terms of production capacity, the first phase of its base in Hunan comprises five production lines that are now fully ramped up and shipping 20 million square meters per month. Also, Bosheng is procuring the equipment for the second phase that will comprise 10 production lines.

As for DFP, it is actually the top supplier for cigarette packages in China. The company’s core business is the design and printing of cigarette packages and other similar types of packages. DFP was established on December 30, 1983, and listed on the Shanghai Stock Exchange on February 16, 2012.

Even though Bosheng and DFP have very different businesses, they began forming a partnership in 2022. On January 12, 2022, DFP and Bosheng signed a strategic cooperation agreement. Under the agreement, both parties will jointly develop products and manufacturing processes related to battery separator films, specialty polymer films, insulation materials, heat dissipation materials, and other kinds of advanced materials related to batteries.

Also, on October 18, 2022, DFP announced that it was going to acquire Bosheng Advanced Materials with cash and shares. In this transaction, DFP bought a 51.06% stake in Bosheng for RMB 3.95 per share. Before the transaction, DFP already had a 48.94% stake in Bosheng. After the transaction, DFP owned Bosheng in its entirety.

DFP stated that with the acquisition, it will be able fully leverage Bosheng’s team of professionals, technological know-hows, and client base. DFP will thus be able to develop battery separator films and build up production capacity for these products. Furthermore, DFP will be offering optimized battery separator films and related composite materials in the regional markets within China (i.e., South China, Southwest China, and Central China).

Regarding the new base in Loudi, DFP said this investment project will allow it to provide high-quality services to its clients in a timely manner. The base will increase the efficiency of the company’s battery-related businesses and enable the company to effectively capture opportunities in the fast-growing markets for Li-ion batteries. In particular, DFP is focusing on the industry chain for battery energy storage systems. By creating service platforms for separator films and composite materials, DFP will be able to maintain a high level of profitability and competitiveness.

This article is a translation of a Chinese article posted by Marry at TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.

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