LB Group (SHE:002601) will increase the capital in subsidiary Henan Baililian New Materials by 2 billion yuan and introduce new investors, according to a Tuesday filing with the Shenzhen bourse.

Following the capital increase, registered capital will rise to 2.48 billion yuan, with the company still holding 68.6% of Baililian New Materials.

The investment will also involve the purchase of about 778 million yuan in capital by new shareholders Bank of Communications Financial Asset Investment, CITIC Financial Asset Management, Xingyin Financial Asset Investment, CITIC Financial Asset Investment, Henan Asset Management, BOC Financial Asset Investment, and Shenzhen Zhongxin Pengxiang Science and Technology Innovation Private Equity Investment Fund Partnership.

Henan Baililian New Materials holds the largest single chloride process titanium dioxide production base in China with a production capacity of 400,000 tons per year, the filing said.