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Yuanxing Energy: Commissioning of project for annual production of 300,000 tons of synthetic ammonia and 520,000 tons of multi-purpose urea Author/Source: Date: 2018-09-11 Clicks: 34 On September 10, Yuanxing Energy announced that the “project for annual production of 300,000 tons of synthetic ammonia and 520,000 tons of multi-purpose urea”, invested in by Xing’an League Boyuan Chemical Co., Ltd., a subsidiary controlled by Inner Mongolia Yuanxing Energy Co., Ltd. (hereinafter referred to as “the Company”), has successfully completed all stages of testing, including individual unit tests and integrated tests, and is now producing urea products. The progress of this project is in line with the company’s construction plans; going forward, the company will continue to adjust and optimize the facilities based on the operational conditions, with the aim of achieving full production capacity and meeting all specified standards. It is reported that Yuanxing Energy and its subsidiaries are mainly engaged in the production and sales of soda ash, coal, coal chemical products, methanol, and other chemical products. This project is an investment funded as part of the company’s major asset restructuring in 2014; it uses coal as raw material to produce urea products, thereby serving as a valuable supplement and expansion to the company’s core business. As some of the equipment and process parameters for the project require further optimization, it will take some time before the project can reach full production capacity and meet the required standards. The project’s profitability will be affected by fluctuations in the market prices of raw materials such as coal and the product urea. The company’s semi-annual report released on the 9th showed that during the reporting period (January 1–June 30, 2018, the same below), it produced a total of 3.2123 million tons of various products, generating revenue of 4.68 billion yuan, a decrease of 12.43% compared to the previous year. Of this, 503,900 tons of urea were produced. Self-produced urea generated revenue of 848 million yuan, a year-on-year increase of 32.07% ； Trade urea generated operating revenue of 112 million yuan, a year-on-year decline of 78.72%. 232,400 tons of methanol were produced. Revenue generated from self-produced methanol amounted to 487 million yuan, representing a year-on-year increase of 704.70% ； Trade methanol generated operating revenue of 303 million yuan, an increase of 0.44% on a year-on-year basis. The announcement states that during the reporting period, there were no significant changes in the company’s main business activities, business model, or key drivers of performance, and the company did not carry out any major mineral resource exploration activities. The company’s production costs for soda ash and baking soda produced via the natron process give it a significant competitive advantage in the industry, with soda ash and baking soda remaining the main sources of profit for the company. On March 4, 2018, the 400,000 tons per year methanol production unit at Boyuan Lianhua resumed operations as part of the natural gas supply was restored ； On April 8, 2018, another 600,000 tons per year methanol production unit at Boyuan Lianhua resumed operations. At present, all of Boyuan Lianhua’s 1 million tons per year methanol production units powered by natural gas have resumed operation, enabling the company to turn a loss into a profit in the first half of the year.