China’s Shandong Fangyuang Nonferrous Metals Group, a private copper smelter, denied reports of filing for bankruptcy on Thursday while acknowledging that the company’s finances are stressed.
Fangyuang produces 748,000mt of electrolytic copper annually and is the fourth largest copper smelter in China.
The company confirmed normal functioning of production operations amid a distribution of false information on various websites and WeChat platforms about Fangyuang filing for bankruptcy. The copper smelter admitted facing a tight liquidity situation and that the company is in contact with creditor agencies to negotiate its current debt.
In June, a total of 22 banks granted a combined CNY16.1bn ($2.29bn) loan to Fangyuan, according to the company’s financial report.
($1=CNY7.03)