CITIC Heavy Industries Adjusts Placement Projects, Sets Up RMB943 Million Wear-Resistant Base

CITIC Heavy Industries on the evening of August 13 announced plans to adjust the use of funds raised from a private placement to specific investors. The company will reduce by RMB143 million the amount of raised funds allocated to its panel box body key equipment production line construction project, and convert the high-end wear-resistant parts production line intelligent transformation project into the high-end wear-resistant material base project. The new project carries total investment of RMB943 million, of which approximately RMB300 million will come from raised funds — RMB157 million from the original intelligent transformation project's raised funds (including interest and cash management income, with the final transfer amount based on the actual balance on the transfer date) and RMB143 million from the reduction in the panel box body project.

The company said that with market demand continuing to grow and existing capacity already tight, the original plan was limited to partial production line upgrades and offered insufficient capacity expansion to meet the needs of large-scale development. The conversion to the high-end wear-resistant material base project moves beyond partial line adjustments, using comprehensive planning and full construction to systematically expand high-end wear-resistant material capacity and industry scale. This adjustment is expected to improve the efficiency of raised-fund usage while addressing the shortcomings of the original partial-upgrade plan in capacity scale and implementation results.

CITIC Heavy Industries has seen sustained growth in demand for its wear-resistant products. In 2025, effective orders for wear-resistant lining plates exceeded 45,000 tonnes, up 13% year-on-year, with overseas orders rising 25.1%. In the first half of 2026, new effective orders for wear-resistant lining plates grew 34% year-on-year. Existing lining plate capacity of 30,000 tonnes per year is nearly saturated. Following the conversion, the new base will build a 50,000-tonne-per-year high-end wear-resistant material production line, establishing a full industry chain spanning from product research and development to after-market comprehensive services.

Under the new project plan, construction will involve a 50,000-tonne-per-year high-end wear-resistant material production line with total investment of RMB943 million. The project will leverage digital and intelligent technologies to build an intelligent operations system, achieving business digitalisation, automated operations, transparent management, smart operations and data-driven knowledge management. Compared with the existing wear-resistant material production base, the new line will achieve significant improvements in staffing, crane operations and model delivery cycles, with online collection of key production parameters and full-process quality traceability, supported by an intelligent warehousing and logistics system for further cost reduction and efficiency gains.

On the technology front, CITIC Heavy Industries operates a national key laboratory for intelligent mining heavy equipment and two national-level enterprise technology centres, providing core technological support for the project. Through independent research and development, the company has achieved batch production and application technology for lining plates of Φ12.2m semi-autogenous mills, solving the industry problem of fracture in key discharge-end components and extending the service life of lining plates for mills above Φ8m beyond six months. On the market front, its wear-resistant lining plates are exported to Australia, South America and elsewhere, and the company has established long-term partnerships with leading domestic mining enterprises.