EY to access Dongying Fangyuan in financial distress; foreign banks weigh exposure

International auditing and advisory firm EY has stepped in to assist China’s biggest private copper smelter, Dongying Fangyuan, in navigating problems with frozen assets, lawsuits and access to credit, Fastmarkets has learnt.

“The situation is getting better,” a source with direct knowledge of the matter said, without elaborating on the progress and scope of EY’s assistance.
The Shandong-based smelter, China’s fourth-largest copper maker, is currently running at limited capacity.
Despite market speculation about a complete shutdown, its 120,000-tonnes-per-year concentrates smelting line and 80,000-tpy scrap and blister copper processing line are in full operation, the source said.
This means output of roughly 16,000 tonnes per month of copper cathodes.

“They should still have enough concentrate for production until the lunar new year [at the end...

Published

Julian Luk

January 13, 2020

10:00 GMT

London