Lumena Resources Corp, the world's second-largest producer of the industrial chemical thenardite, plans to expand market share by buying rivals and boost profits by producing more high-value-added products.
The Sichuan-based company was in talks to acquire rivals that had mining rights or customers complementary to Lumena's client base, chief executive Zhang Daming said.
The company mines thenardite, also known as sodium sulphate, and processes it into products used in a wide array of industries, including powdered detergent manufacturing, textile dyeing and glass making, and as a laxative and anti-inflammatory agent in medicine.
China is the largest producer, consumer and exporter of the mineral and has the biggest reserves.
Lumena also aims to increase profit and market share by expanding sales in speciality products.
It plans to spend 300 million yuan (HK$340.53 million) by next year's third quarter to build production lines for new processed products used by the pharmaceutical and animal feed sectors, prepare its fourth mine for production and reduce operating costs at its existing mines.