- Plan paves way for state ownership shift at lithium materials supplier
- Deal links upstream chemicals with downstream battery and display components
Shanshan Group (杉杉股份), a Ningbo-based manufacturer of lithium battery materials and display components, has secured creditor approval for its restructuring plan, clearing a key hurdle for a state-backed takeover.
The proposal was approved by all voting groups at a creditors’ meeting on April 15, setting the stage for Shandong’s state-run Wanwei Group to take a controlling stake through a combination of share acquisition and concerted action arrangements.
Under the plan, Wanwei will spend about 7.16 billion yuan ($105 million) to secure 21.88% of voting rights in Shanshan Corp.
If completed, control of the listed unit will shift to Anhui’s state-owned assets regulator.
The move would integrate Wanwei’s upstream polyvinyl alcohol business with shanshan’s downstream production of polarizing films and battery materials, creating a more vertically aligned supply chain.
The restructuring still requires court approval, with administrators expected to submit the plan to a local court in Ningbo.
Shanshan said in an exchange filing that its operations remain stable and the process has not materially disrupted its business.
Once a pioneer in China’s apparel sector, Shanshan has transformed into a major supplier of lithium battery materials and display components.
It ranked second globally in shipments of artificial graphite anode — a key battery material — in 2025, with about a 21% market share, and has maintained the top position in large-size LCD polarizer shipments for several years.
The group entered restructuring after a period of instability triggered by the sudden death of founder Zheng Yonggang in 2023, which led to a prolonged control dispute within the family alongside mounting debt pressures.
