Thread Content
On April 12, Hubei Yihua issued a announcement stating that its wholly-owned subsidiary, Hubei Yihua Chuxing Ecological Technology Co., Ltd. (referred to as “Yihua Chuxing”), plans to invest in a project for the energy-saving upgrade of production facilities, with the aim of producing 400,000 tons of phosphatic ammonium fertilizer and 200,000 tons of sulfur-based compound fertilizers per year. The total investment for this project is approximately 3 billion yuan. Hubei Yihua is located in Yichang, Hubei – a region that falls under the framework of measures aimed at protecting the Yangtze River. It is the core subsidiary of Hubei Yihua Group and is mainly engaged in the manufacturing of chemical raw materials and chemical products. Its operations cover areas such as coal chemical industry, chlor-alkali chemistry, phosphorus-fluorine chemistry, and fine chemicals. The company was listed on the Shenzhen Stock Exchange in 1996, becoming China’s first listed company in the nitrogen fertilizer sector. Yihua Group is known as the \"eldest industrial enterprise in Yichang\". It is the world’s largest producer of polyols, Asia’s largest manufacturer of fertilizers and well-mined salts, and China’s largest producer of caustic soda and chlor-alkali chemicals. The group possesses reserves of mineral resources such as coal, phosphate, and salt amounting to 2.7 billion tons, with an annual mining capacity of 40 million tons. The announcement states that in order to promote the upgrading of the phosphorus chemical industry, address the issue of competition with Hubei Chuxing Chemical Co., Ltd. (referred to as “Chuxing Chemical”), and fulfill the political responsibilities and social obligations of state-owned enterprises under the **“Great Protection of the Yangtze River” policy**, Yihua Chuxing plans to invest in a project for the energy-efficient upgrading of production facilities, with an annual output of 400,000 tons of phosphate ammonium and 200,000 tons of sulfur-based compound fertilizers. The total investment for this project is approximately 3 billion yuan. It is understood that Yihua Chuxing was established in 2023 and is a wholly-owned subsidiary of Hubei Yihua. Chu Xing Chemical was established in 1994; together with Hubei Yihua, it is a subsidiary under the Yihua Group, and it is the largest producer of monoammonium phosphate in China. In its announcement, Hubei Yihua stated that in line with the development plan for the upgrading of the phosphorus chemicals industry, the company needs to expand the scale of this industry, diversify its fertilizer product portfolio, and strive to become a state-owned enterprise responsible for ensuring the supply of phosphorus-based fertilizers. At the same time, Chu Xing Chemical must shut down and relocate its phosphoric ammonium plant by the end of 2025. The company utilized the 400,000 tons per year of diammonium phosphate production capacity that Chuxing Chemical provided to Yihua Chuxing to invest in this phosphammonium project, thereby promoting the upgrading, improvement, and efficiency enhancement of the phosphorus chemical industry. To implement the relevant provisions of the policies aimed at protecting the Yangtze River, and to address the impact of industry cycles on the company’s performance, Hubei Yihua has been working continuously in recent years to advance industrial transformation as well as industrial technological upgrades. According to the \"Implementation Plan for the Transformation and Upgrading of Hubei Province’s Chemical Industry (2023–2025)\", the company’s wholly-owned projects for the relocation of phosphate ammonium production facilities and the upgrading of related equipment, as well as the project for the transformation and upgrading of clean coal pressurized gasification combined production systems, are all included in Hubei Province’s list of key tasks for the transformation and upgrading of its chemical industry. Additionally, the new energy battery material project in which the company holds a stake, along with the ferric phosphate and related material projects operated by Stanley Yihua, are also listed among these key tasks.