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China Xinlianxin Fertilizer (01866.HK) plans to invest 200 million yuan in establishing a new compound fertilizer production facility in Jinchang, Gansu Province. Author/Source: Xinlianxin Chemical Industry Group. Date: 2021-11-17. Clicks: 29. China Xinlianxin Fertilizer (01866.HK) has announced that it intends to invest around 200 million yuan in setting up a new compound fertilizer production facility in Jinchang City, Gansu Province. The facility is planned to have a production capacity of 510,000 tons of fertilizers, including compound fertilizers, along with supporting production and residential facilities. The first phase of the Jinchang facility is planned to require an investment of around 150 million yuan, which will be used for purchasing land, building production lines, constructing storage facilities, and carrying out public works; the construction period is expected to be 1 year. The progress of the implementation of Phase 2 of the Jinchang facility will be determined based on the performance of previous projects and market conditions. According to the disclosures, the Hexibao Industrial Park (a provincial-level chemical industry park) selected as the location for the Jinchang facility is intended to serve as an important production base for basic chemical products in Gansu Province, as well as a production base for fertilizers in the Northwest region. The park is located adjacent to the Eurasian artery, the Lanzhou-Xinjiang Railway, and the Lianyungang-Haikou Expressway, offering convenient transportation access. The park boasts advantages in terms of raw materials such as nitrogen, phosphorus, potassium, and sulfuric acid, and it is able to meet all the requirements regarding energy use, land use, water use, and environmental capacity. “During the 14th Five-Year Plan period, efforts will be made to refine and improve the coal chemical and fine chemical industries, while also strengthening the chlorine-alkali chemical and high-quality fertilizer industry chains. The board of directors believes that the establishment and development of the Jinchang facility will help optimize the company’s national layout for its compound fertilizer business, enable it to capture the market in the northwest region for compound fertilizers, and take advantage of geographical advantages in terms of resources as well as strategic synergies.