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THM to raise USD 595mn
Posted on Monday, 13 November 2017 10:36
Taihai Manoir Nuclear Equipment (THM) is diluting its equity via a share sale worth as much as CNY 3.95 billion (USD 594.82 million) to finance projects to increase production capacity and capability.
Controlling shareholder Yantai Taihai Group said it would subscribe to no less than half of the 173.41 million new stocks on offer in the private placement representing a total enlarged stake of 16.7 per cent.
THM, which had a debt ratio of 58.3 per cent as of 30th September 2017, specialises in primary coolant circuit of 1000MW pressurised water reactor nuclear power plants.
However, the company also provides a variety of valves, super duplex stainless steel impeller and other large sizes of nuclear and non-nuclear grade level casting and forging products and services.
It is equipped with the world's more advanced smelting, casting, forging, heat treatment, machining, welding and other production equipment, according to its LinkedIn profile.
China’s nuclear power industry is gradually recovering from the fallout of Japan’s Fukushima accident in 2011 but despite this, there is still a large market opportunity.
The country started carrying out safety measures for those plants under construction and in operation, and suspended the approval of new domestic projects, but is now powering up for growth once again as part of its 13th five-year plan.
According to the World Nuclear Association statistics cited in the statement, as of the end of 2015, the US accounted for 18.5 per cent of the world’s total average nuclear power generation, compared to just 2.8 per cent for China.
The country wants installed capacity to reach 58.00 GW by 2020 and THM’s fundraising will let the company tap into a trend of developing large-scale nuclear power equipment to solve the manufacturing difficulties of large reactor core components
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