CNSIC Chemical invests heavily 25.283 billion in a major natural soda ash project

On the evening of May 14, CNSIC Chemical Industry released a major investment announcement. The company plans to invest in and construct the CNSIC (Inner Mongolia) Alkali Industry Co., Ltd. 5 million tons/year natural trona mineral resource comprehensive development project. The total investment for the project amounts to 25.283 billion yuan, marking a significant move in the natural alkali sector to seek an upgrade in the industrial landscape.

In terms of the secondary market, as of the close on May 14, CNSIC Chemical Industry's stock price was reported at 8 yuan per share, a slight decline of 1.23%. The company's corresponding market capitalization for the day reached 11.73 billion yuan. The multi-billion yuan investment scale far exceeds the company's current market value, sparking high market attention.

As the company's core pillar business, CNSIC Chemical Industry currently possesses an annual soda ash production capacity of 3.9 million tons, with its capacity scale firmly ranking among the top three in the domestic industry. The addition of the 5 million tons/year natural alkali project this time aims to optimize the soda ash product structure and further consolidate and enhance the core competitiveness of the soda ash industry.

According to the announcement disclosure, the construction period for this project is 24 months, with a scheduled official start date of June 3, 2026. The after-tax financial internal rate of return is expected to reach 8.01%. Regarding funding, the enterprise will invest 8 billion yuan of its own funds, accounting for 31.64% of the total investment, while the remaining funds will be raised through bank loans. Currently, this investment matter still needs to be submitted to the company's shareholders' general meeting for approval before proceeding.

The company stated that the implementation of this project will fill the gap in its own natural alkali production business, forming a new industrial layout featuring the ammonia-soda process, the Hou process (combined alkali process), and the natural alkali process operating in parallel. Relying on the rich and high-quality natural alkali resources in Naiman Banner, Tongliao City, Inner Mongolia, the company has successfully entered the natural alkali niche sector, which possesses both cost and environmental advantages. At the same time, the project aligns with the policy support direction of the "Catalogue of Industries Encouraged in the Western Region (2025 Edition)." This will not only solidify the company's leading position in the soda ash industry but also build differentiated competitive advantages, laying a solid foundation for creating a globally leading, high-quality natural alkali production base.

Public information shows that CNSIC Chemical Industry's main business covers three major sectors: basic chemicals, fine chemicals, and building materials. Its core products include soda ash, caustic soda, PVC, paste resin, metallic sodium, and cement clinker.

In terms of performance, the company has faced significant pressure in recent years. Financial report data for 2025 shows that the full-year operating revenue was 11.343 billion yuan, a year-on-year decrease of 12.02%; the net profit attributable to shareholders was only 73.9494 million yuan, a massive year-on-year plunge of 85.75%. The substantial decline in performance was mainly due to changes in the industry's supply and demand landscape. The selling price of core soda ash products dropped significantly year-on-year, and industry gross margins were continuously compressed, directly dragging down overall profitability levels. Facing downward industry pressure, the company has implemented measures such as full-chain lean management, cost reduction and efficiency enhancement, process optimization, and energy conservation to hedge risks. Simultaneously, it has increased market development and business model innovation to alleviate the performance impact caused by product price fluctuations.

Entering 2026, the company's operational pressure has not eased. The first-quarter financial report shows that operating revenue for the period was 2.426 billion yuan, a year-on-year decrease of 12.37%; the net profit attributable to shareholders was a loss of 154 million yuan, swinging from profit to loss year-on-year. Industry analysis points out that the simultaneous weakening of prices for core products such as soda ash, PVC, paste resin, and metallic sodium in the first quarter was the primary inducement for the company's declining revenue and operating loss. This multi-billion yuan natural alkali project layout has thus become a key move for the company to navigate the industry cycle and open up a second growth curve.