Xinlianxin Fertilizer expects to add 600,000 tons of synthetic ammonia production capacity in 2021, and will build a new urea production facility with a capacity of 700,000 tons

Thread Content

Xinlianxin Fertilizer expects to add 600,000 tons of synthetic ammonia production capacity in 2021, with a new urea production project of 700,000 tons to be established. Author/Source: Gasification World Date: 2021-02-01 Clicks: 15 China’s Xinlianxin Fertilizer has recently announced that the project to upgrade its Xinxiang facility using clean production technologies is scheduled to come online in 2021; this will enable the company to add 600,000 tons of annual synthetic ammonia production capacity, and the liquid ammonia production capacity at the Xinxiang facility will also reach its maximum level. In line with the company’s overall strategic plan, it intends to build a new urea production facility with an annual capacity of 700,000 tons as part of the renovation project for its Xinxiang facility. The total investment is estimated at around 580 million RMB, with a construction period of approximately 30 months. It is understood that the new urea production facility utilizes internationally advanced clean production technologies with relatively low energy consumption and costs; once operational, it will fully compensate for the urea production capacity lost due to the shutdown of the company’s second and third production lines at the end of 2020. Moreover, the urea produced by the new projects is of higher quality, which can fully meet the company’s demand for raw materials for vehicle-use urea. The company expects that the demand for and sales of vehicle-use urea will continue to grow in the future, indicating great potential for development. At the same time, the new urea production project will further enhance the flexible adjustment capacity of the liquid ammonia and urea production capabilities at the Xinxiang facility (including both urea and urea for use in vehicles), thereby maximizing economic benefits and strengthening the group’s ability to withstand market fluctuations. Henan Xinlianxin Fertilizer Co., Ltd. is implementing a project for industrial upgrading using clean production technologies, with a total investment of 300 million yuan. It makes use of the production capacity transferred from its first factory as well as the 360,000 tons per year of ammonia and alcohol production capacity of its second branch. In accordance with the requirement to replace production capacities of synthetic ammonia and methanol on an equal basis, it also adjusts its industrial structure by adding more product varieties, and constructs new production facilities capable of producing 200,000 tons per year of ethylene glycol and 200,000 tons per year of dimethyl ether. During the capacity replacement process, while ensuring an adequate supply of feed gas for the ethylene glycol production unit, the remaining capacity can only be used to produce a portion of methanol. The amount of methanol required for the 200,000 tons per year dimethyl ether production line that cannot be met through this capacity must be purchased externally or obtained through internal reallocation. Henan Xinlianxin Chemical Industry Group Co., Ltd. (formerly: Henan Xinlianxin Fertilizer Co., Ltd.) was established in 1969. It was transformed from a state-owned enterprise into a private enterprise in 2003, and then became a joint-stock company in 2019. Its controlling shareholder, China Xinlianxin Fertilizer Co., Ltd. (a company registered in Singapore), was listed on the main board of the **Stock Exchange on December 8, 2009. Henan Xinlianxin Chemical Industry Group currently has three production bases in Henan, Xinjiang, and Jiangxi, where it manufactures products such as urea, compound fertilizers, methanol, and melamine. Leveraging the resources available in Henan, Xinjiang, and Jiangxi provinces, the group will adhere to a differentiated strategic approach, focusing on the advancement of clean coal chemical industry practices, in order to maintain its advantages in the fertilizer sector and its leading position in this industry. At the same time, new energy and new material chemicals should be developed in a moderate manner, so as to establish an industrial development pattern that gives priority to fertilizers while also promoting the development of fertilizer-related products.