Seize the opportunity for high-end manufacturing Decoding the Development Path of China's' Titanium Valley '

Renowned for its metal, the industrial cluster ranks among the top in the world in terms of scale. Baoji, a historic city in Shaanxi Province, occupies the majority of China's titanium industry and ranks first in the country in terms of industrial scale. It is known as the "Titanium Valley of China" and the "Cradle of China's Titanium Industry". From daily tableware, eyeglass frames, medical dental implants, to the "Shenzhou" spacecraft, the "Chang'e" moon landing, and the "strugglers" exploring the sea, Baoji titanium materials can be found in both "major national weapons" and daily necessities.
In Baoji, there are over 600 titanium related enterprises, with leading and specialized new enterprises thriving. Data shows that in 2023, the production and processing volume of titanium materials in Baoji will account for about 65% of the national and 33% of the global total, and the scale of the titanium industry will be the largest in the world. Meanwhile, the titanium industry in Baoji is also one of the 34 key industrial chains in Shaanxi Province. Shaanxi Province plans to lay out a billion yuan industrial chain and promote the high-end development of titanium industry clusters.
Innovation oriented construction of a major national treasure
Titanium is known as the "space metal" and "ocean metal", and is an important strategic metal material in the 21st century. Titanium ingots are processed into titanium materials through forging, rolling, extrusion, etc. Due to their high strength, light weight, corrosion resistance, wear resistance, and good biocompatibility, they are widely used in aerospace, marine engineering, medical and other fields.
At the Baotai Group exhibition hall, the 1:1 titanium alloy spherical shell model is very eye-catching, which is the core component of manned submersibles. The "Striver" spacecraft, equipped with a titanium alloy shell, set a Chinese manned deep-sea diving record of 10909 meters.
A reporter from China Securities Journal learned that from the 7000 meter class of the Jiaolong spacecraft to over 10000 meters of the Fendouzhe spacecraft, the requirements for titanium alloy manned cabins are becoming increasingly high.
The titanium alloy manned cabin has a diameter of 2 meters and can withstand water pressure at depths of tens of thousands of meters. Led by Baotai Group and jointly developed by multiple domestic units, it uses integral stamping and electron beam welding technology to fill multiple gaps in the research field of deep-sea submersibles and titanium alloys in China, reaching the international advanced level.
Since the 1960s, with the establishment of Baotai Group, Baoji has embarked on the path of titanium industry development. Innovation oriented, after decades of wind and rain, the number of titanium industry enterprises in Baoji has increased to more than 600, and titanium and titanium alloys have become the first industry in Baoji City. Data shows that in 2023, the titanium industry in Baoji City will achieve an output value of 61 billion yuan, a year-on-year increase of 5.2%; The production and processing volume of titanium materials is about 65000 tons, a year-on-year increase of 8.3%, and the cluster size ranks first in the world.
In September of this year, Baoji Jucheng Titanium Industry invested 700 million yuan in a new factory project that was put into operation. The reporter learned from Jucheng Titanium Industry that the new factory project involves multiple production lines such as titanium products, titanium equipment, titanium daily necessities, military products, and new energy equipment. At the same time, the new factory area has initially built four major centers: "Titanium Material Processing Center", "Titanium Product Research and Development Center", "Titanium Equipment Manufacturing Center", and "Titanium Lifestyle Product Promotion Center", becoming a comprehensive titanium industry base integrating new material research, development, production, manufacturing, inspection, testing, and service guarantee. After the completion of the project, it can achieve an annual sales revenue of 2 billion yuan, create 300 new jobs, and generate profits and taxes of 120 million yuan, meeting the urgent demand for advanced basic materials in China's high-end equipment field and further promoting the promotion and application of titanium materials in the high-end equipment field.
At present, Baoji City has formed a titanium industry cluster led by Baotai Group, gathering enterprises such as Lixing Titanium Industry, Jucheng Titanium Industry, Topda Titanium Industry, Xinnuo New Metal, etc. The power of "titanium" is becoming increasingly strong.
Industrial upgrading expands application areas
Benefiting from the upgrading and iteration of downstream aerospace and other fields, the demand for high-end titanium materials is strong, and the relevant technological level is becoming increasingly mature.
Since 2023, 3C manufacturers such as Honor, Apple, and Samsung have begun to introduce titanium alloy materials, accelerating the penetration of titanium alloys into consumer electronics products such as smartphones, smart wearable devices, tablets, and laptops. More and more titanium products are entering the mass market.
Industry insiders say that titanium alloys have advantages such as high strength, lightweight, and corrosion resistance, which can help improve the lightweight and durability of electronic products. Titanium alloy enters the 3C track, and its growth space is expected to continue to open up. At present, relevant listed companies are accelerating their industrial layout, covering areas such as raw materials and component manufacturing.
This year, Baotai Corporation entered the "fruit chain" and became the core supplier of titanium materials for iPhone Pro series bezels.
As a leading domestic titanium material enterprise, the reporter learned from Baotai Co., Ltd. that in recent years, the company has closely followed the development trend of the consumer electronics market, accelerated transformation and upgrading, and the number of customer orders from the consumer electronics field has rapidly increased.
In June, Baotai Co., Ltd. adjusted its fundraising project to "Construction of a pilot production line for titanium alloy 3D printing". After the project is completed and put into operation, an additional 126.25 tons/year of titanium and titanium alloy spherical powder will be added, and the production capacity of titanium alloy, high-temperature alloy, and stainless steel 3D printing products will be 22.8 tons/year. The implementation of 3D printing projects will further improve the company's industrial chain layout.
According to a research report by Southwest Securities, titanium alloys have entered the 3C market, and the industry trend is clear. Compared to traditional 3C materials, titanium alloys have significant advantages in terms of strength, corrosion resistance, and lightweight characteristics, accelerating the layout of top manufacturers. The demand for titanium materials in the consumer electronics sector is expected to reach 10000 tons in 2023, and is projected to increase to 61000 tons by 2025.
Baotai Corporation stated that it will expand its development space and promote the application of titanium materials in fields such as healthcare, construction, new energy, and environmental protection, effectively increasing the demand for titanium materials.
Policy guidance to build a trillion yuan industrial cluster
During the research process in Baoji, the reporter encountered clients from Southeast Asia who showed great interest in titanium made cups and tableware.
In recent years, the titanium industry chain has been further extended, and its application areas and scale have continued to expand. The reporter learned from Baoji Ouyuan Metal Company that the company's titanium outdoor kettles, cups, tableware and other products have an annual sales volume of over 24 million yuan and have opened 40 stores worldwide. With the advantages of corrosion resistance and non allergy, more and more titanium products are entering people's daily lives.
At present, Baoji has formed a relatively complete industrial system covering 35 categories and 317 industries, becoming a national advanced manufacturing highland. Nowadays, Baoji has a complete chain of "sponge titanium - titanium ingot - titanium processing material - titanium alloy material - titanium composite material - titanium deep processing product". Baoji produces more than 300 varieties and 5000 specifications of titanium products, which are widely used in aerospace, navigation, new energy, chemical, medical and health fields, and exported to more than 70 countries and regions.
In order to accelerate the transformation of industrial technological achievements, Baoji has established the Northwest Nonferrous Metals Baoji Innovation Research Institute, held the 2022 Titanium Zirconium Hafnium Branch Annual Meeting and Titanium Zirconium Hafnium Industry Development Summit Forum, and the 2023 China Titanium Valley International Titanium Industry Expo, further improving the titanium industry ecosystem and enhancing the international discourse power of China's titanium industry.
In 2023, Baoji issued the "Three Year Action Plan for Upgrading the Titanium and New Materials Industry Chain in Baoji City (2023-2025)" and the "1+5+N" series of policies to support the high-quality development of the manufacturing industry, in order to * enhance the modernization level of the titanium industry chain. Baoji plans to achieve a titanium processing capacity of 100000 tons and a total output value of over 100 billion yuan for the titanium and new materials industry cluster by the end of the 14th Five Year Plan period.