Some of the facilities with an annual production capacity of 660,000 tons of diammonium phosphate at Hubei Yihua Fertilizer Co., Ltd. have already been put into operation

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On the evening of June 26, Hubei Yihua announced that it would relocate the 660,000 tons per year production capacity of diammonium phosphate held by its wholly-owned subsidiary, Hubei Yihua Fertilizer Co., Ltd., to the Tianjiahe area of the Yaojiagang Chemical Park in Yichang. With Hubei Yihua Phosphorus Chemical Co., Ltd. as the entity responsible for the project, a facility capable of producing 200,000 tons per year of refined phosphoric acid and 650,000 tons per year of phosphammonium fertilizer will be built (referred to as the “Phosphorus Chemical Project”). Some of the facilities in this project have already begun operations. 　　On August 10, 2023, Hubei Yihua announced that the total investment for the project to relocate the 200,000 tons per year phosphate refining facility and the 650,000 tons per year phosphoric ammonium production facility, as well as to upgrade the associated equipment, was approximately 5.2 billion yuan. Hubei Yihua Fertilizer Industry was required to complete this relocation by the end of 2025. On May 14 of this year, Hubei Yihua issued another announcement stating that its headquarters, along with its wholly-owned subsidiaries Hubei Yihua Fertilizer Co., Ltd., Yichang Yihua Pacific Chemical Co., Ltd., and the Yidu branch of Hubei Yihua Chemical Co., Ltd., intend to shut down the old factory sites by the end of June 2025, as part of the efforts to relocate and reform chemical enterprises along the rivers in Hubei Province. 　　The latest announcement states that as of the date of disclosure, the phosphate chemical project has completed construction of a phosphorus ore processing facility with an annual capacity of 2.2 million tons, 2 sulfur-based sulfuric acid production units with an annual capacity of 600,000 tons each, a wet-process phosphoric acid plant with an annual capacity of 400,000 tons, an ammonium phosphate plant with an annual capacity of 300,000 tons, an ammonium monophosphate plant with an annual capacity of 300,000 tons, an amino acid-based compound fertilizer plant with an annual capacity of 100,000 tons, a sulfur-based compound fertilizer plant with an annual capacity of 200,000 tons, and a high-grade flame retardant production plant with an annual capacity of 100,000 tons; all these facilities, along with related supporting infrastructure, have been put into operation safely and successfully in recent times. Products such as diammonium phosphate, powdered monoammonium phosphate, amino acid compound fertilizers, sulfur-based compound fertilizers, and high-grade flame retardants are being produced at full capacity. 　　Regarding the impact on the company, Hubei Yihua stated that by taking advantage of the task to shut down, transform, relocate, or move chemical enterprises within 1 kilometer along the riverbank, the company is promoting the transformation and upgrading of its phosphorus chemical industry. It is also facilitating the hierarchical utilization of phosphorus ore resources. By making full use of the existing production capacity for phosphate ammonium, the company is able to develop traditional phosphate ammonium products into higher-quality, more refined products with greater added value. This approach helps to expand the scale of phosphorus chemical products, adjust their structure, improve the layout of the phosphorus chemical industry, and further enhance the company’s profitability and market competitiveness. 　　However, Hubei Yihua also highlighted the risks, stating that the company adjusts its production capacity in line with market demand; meanwhile, fluctuations in the prices of raw materials and key products due to changes in market supply and demand may result in project profitability falling short of expectations.