Walsin Lihaw’s board meeting today passed a resolution to acquire 50.1% equity of PT. Sunny Metal Industry respectively from Ever Rising Limited and Berg Holding Limited under Tsingshan Holding Group. The acquisition amounting to US$200 million are intended to invest in nickel matte production and a power generation plant in Indonesia Weda Bay Industrial Park.

As Walsin Lihwa will increase investment in its nickel matte and nickel pig iron production capacities, the newly acquired PT. Sunny Metal Industry is setting up four rotary kiln electric furnace lines for nickel matte production as well as an inhouse power generation plant of 380,000 KWH. In mid-2021 PT. Sunny Metal Industry commenced setting up its furnace production lines, which are scheduled for completion by the end of 2022, and construction of the inhouse power generation plant is scheduled for completion in the second quarter of 2023. Before that, Walsin Lihwa will base on the ratio of its shareholding in PT. Sunny Metal Industry to further provide approximately US$180 million to finance the furnace production line and power plant construction. In 2023 PT. Sunny Metal Industry will be capable of independent production and sales, and its annual capacity of 55,000 tones pure nickel will amount to a significant step for Walsin Lihwa’s expansion into new energy industries.

To secure the stable supply of raw materials for stainless steel production, Walsin Lihwa established Walsin Nickel Industrial Indonesia at the end of 2019 to set up nickel pig iron and power plants in cooperation with Tsingshan Holding Group in Indonesia Morowali Industrial Park. Walsin Nickel Industrial Indonesia’s plant construction for production of nickel pig iron as the upstream raw material for stainless steel was completed as scheduled despite pandemic impacts. Four production lines became operational one by one in the second half of 2021 to commence mass production and help boost the earnings of Walsin Lihwa. The acquisition of 50.1% equity of PT. Sunny Metal Industry this time to invest in nickel matte production and power generation is expected to increase Walsin Lihwa’s total production of nickel by 70% to approximately 68,000 tons for the production of stainless steel as well as manufacturers of electric vehicles and energy storage facilities.