Yibin Haifeng HeRui Waste Salt Comprehensive Utilization Project for the Production of 200,000 tons per year of ion-exchange membrane caustic soda

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The 25th National \"Safety Production Month\" in 2026: Everyone talks about safety, and everyone knows how to respond to emergencies; identifying and addressing potential risks and hazards. -------------------------------------------------- Yibin Haifeng HeRui’s project for the comprehensive utilization of waste salt to produce 200,000 tons per year of ion-exchange membrane caustic soda. I. Basic information on the project 1. Project owner and location: The developer is Yibin Haifeng HeRui Co., Ltd. (a subsidiary of Tianyuan Shares, stock code 002386); the project is located on the east section of Yongxing Avenue in Jiang’an Economic Development Zone, Sichuan Province, with 198.44 mu of new land being allocated for the project. 2. Investment and Approval: The total investment amount is 931 million yuan; the registration number issued by the Jiang’an County Development and Reform Bureau is: Chuan Tou Zi Bei [2512-511523-04-01-627113] ； The energy assessment by the Provincial Development and Reform Commission as well as the environmental impact assessment approval from the Yibin Municipal Ecology and Environment Bureau have been completed. On April 13, 2026, the board of directors of Tianyuan Shares formally approved the project for implementation. 3. Construction scale and process: The membrane electrode distance ion membrane electrolysis process will be adopted, with construction carried out in two phases to achieve an annual production of 200,000 tons of ion membrane caustic soda (100,000 tons per phase) ； The associated by-products include 13,600 tons per year of anhydrous sodium sulfate, and 450,000 tons per year of 10% sodium hypochlorite ； The construction scope includes all the systems and facilities in the whole process, such as waste salt conversion to salt, brine purification, denitration of fresh brine, electrolysis, hydrogen chloride treatment, liquid chlorine production, alkali evaporation, supporting utility systems, tank farms, and machine repair shops. 4. Original purpose of the project: As an environmental protection facility supporting Tianyuan’s 100,000 tons per year titanium dioxide production plant via the chlorination process, it is designed to utilize the industrial waste salt generated as a by-product of the titanium dioxide production process. This waste salt is purified to produce refined brine, which is then used to manufacture caustic soda, chlorine gas, and hydrogen gas, thereby addressing the shortage of chlor-alkali raw materials in the industrial park ； Improve Tianyuan’s circular industry chain of \"chlorine-titanium-phosphorus-iron-lithium\" to meet the growing demand for caustic soda as a raw material in Yibin’s lithium battery and photovoltaic new materials industries. 5. Construction Period and Returns The total construction time is 24 months, with an after-tax payback period of 6.32 years (including the construction period). II. Progress of project bidding: The project adopts a bidding approach carried out by the project owner itself, with the bidding process divided into four main areas: design, procurement of large-scale equipment, civil construction, and procurement of auxiliary materials and tools. 1. Engineering design bidding: The first design bidding will take place in September 2025, while the second bidding will be held in November, followed by the announcement of the winning bidder; thus the overall process design contractor will be determined. The complete set of construction drawings will be finalized and ready by the first quarter of 2026. 2. Tendering for key equipment: Procurement of core equipment will begin in March–April 2026, including rectifier transformers (the second tender will be opened in April), ion-exchange membrane electrolyzers, hydrogen chloride compressors, and complete sets of equipment for brine filtration and denitration ； Simultaneously carry out competitive procurement for general equipment such as fire pumps, instruments, and valves. 3. Tendering for civil engineering projects: The tender announcement for Section 1 of the civil engineering work was issued on April 16, 2026; the bid opening took place on May 8, and the results of the evaluation were made public on May 11. Yibin Construction Group won the contract for Section 1 of the civil engineering work ； Competitive bidding for the rental of project cranes will be launched in early June 2026, while preparations for the tendering for Section 2 of civil engineering work are underway. 4. Tendering for supervision and installation: The tendering plans for mechanical and electrical installation as well as project supervision have been entered into the Yibin Public Resources Platform, with tenders scheduled to be posted online successively in June–July 2026. III. Project Construction Progress (as of early June 2026) 1. Preliminary preparation phase: Site clearing, geological surveys, and the construction of temporary facilities have all been completed; construction drawings and permits are in order ； The winning bidder for Civil Engineering Package 1 has arrived on site to set up a temporary project office, fencing, as well as temporary water and electricity facilities for construction. 2. Current status of on-site construction: Excavation of the foundation pit in the plant area, pile foundation construction, and pouring of the foundation cushion for the tank area are underway ； Simultaneous phased commencement of construction for utility conduit tunnels and circulating water station foundations ； The equipment orders have entered the production planning phase, with the key electrolysis equipment expected to arrive in batches in the fourth quarter of 2026. 3. Schedule planning: The construction period for the main civil works is 180 calendar days. It is planned to complete all civil construction by late 2026; equipment installation will commence in the first quarter of 2027, and trial production with raw materials will be carried out along the entire production line in the fourth quarter of 2027. IV. Significance of Project Construction (1) Significance for Environmental Protection and Waste Disposal This project creates a closed-loop system for the recycling of titanium dioxide waste salt into refined brine and then into caustic soda products. It enables the harmless treatment of hazardous waste salt generated as a by-product of titanium dioxide production on-site, thereby avoiding the risks of soil and groundwater contamination associated with the storage or landfilling of such waste salt. It significantly increases the rate of recycling of large quantities of chemical waste, thus supporting environmental policies aimed at \"reducing, rendering harmless, and recycling\" industrial waste. This project serves as a model for the circular utilization of chemical waste salt in southern Sichuan. (II) Economic value of the industrial chain 1. Cost reduction and efficiency improvement: By using recycled waste salt in place of commercially purchased industrial salt, the costs associated with purchasing raw materials for caustic soda production are significantly reduced, while the high expenses related to outsourcing the disposal of hazardous waste are also avoided ； The export of by-product mirabilite and sodium hypochlorite generates additional revenue, expanding the company’s profit margins. 2. Ensuring a stable supply of raw materials: The locally produced caustic soda, liquid chlorine, and hydrogen serve to support Tianyuan Titanium Dioxide and the phosphorus chemicals industry chains within the region; meanwhile, they are supplied to the lithium battery, photovoltaic, and fine chemicals industrial parks in Yibin. This helps to address the shortage of basic chemical raw materials in Yibin’s new energy industry and reduces the region’s reliance on external sources for such raw materials. (III) Significance for industrial and regional development 1. Improve circular industry clusters: Strengthen Tianyuan’s green circular industry chain based on the integration of chlorine and titanium, improve the integrated industrial layout of \"chlorine-titanium-phosphorus-iron-lithium\", and help Jiang’an Economic Development Zone become a model park for green chemical recycling. 2. Contributing to the dual-carbon goals and the local economy: The reuse of waste salts as a substitute for the extraction of natural minerals helps reduce carbon emissions from mining and resource consumption ； The implementation of this project creates job opportunities in the construction, equipment manufacturing, and operation and maintenance sectors; it strengthens Yibin’s infrastructure for the fine chemical and new energy-related industries, and facilitates the green and low-carbon transformation of these industries in southern Sichuan. It also provides a replicable industrial model for the processing of waste salts through the combined production of titanium dioxide and chlor-alkali products in China.