Tinci Holdings
Tinci is an environmental engineering company primarily involved in developing manufacturing and installing Flue Gas Desulphurisation systems for reducing sulphur dioxide emissions from coal-fired power stations and large industrial boilers in China.
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Tinci shifts to smaller customers in response to interim results fall
China-focused environmental engineering group Tinci Holdings Ltd said it will focus its efforts on the flue gas desulfurization (FGD) market in the remainder of 2009, targeting small to medium size companies, as it announced first half numbers which were badly hit by the ongoing harsh competition for orders from large customers.
The difficult trading conditions are expected to continue well into 2010.
Because of the effects of the economic crisis in 2008, most large power plants and metallurgical plants postponed or terminated their planned FGD projects, resulting in a in a sharp decrease in new projects in six months to end-June 2009, it said.
Turnover plummeted to Renminbi48.0 million from Renminbi135.0 million and pretax profit dropped to Renminbi1.4 million from Renminbi10.5 million a year earlier.
To mitigate the tough environment for willing large customers, Tinci is exploring a number of possible joint ventures with its established customers and partners in niche markets.
While focusing on the FGD market in the near future, the company will continue to promote its Spray Dry Absorber (SDA), Tinci Flue Gas Desulfurization (TFGD), and Magnesium Oxide Flue Gas Desulfurization (MgO FGD) technologies.
MgO FGD technology utilizes magnesium oxide as the neutralizing agent instead of limestone to remove sulfur oxide in flue gas. The major benefit of MgO FGD technology is that the by-product from desulfurization can be recycled to reproduce the neutralizing agent MgO and concentrated sulfur dioxide. MgO can be re-used for desulfurization, while concentrated sulfur dioxide can be used to produce sulfuric acid, which is a widely used chemical commodity.
