Signing of project to produce 1.2 million tons of coal-based ethylene glycol with an investment of 11 billion yuan

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Deal signed for 11 billion yuan investment in 1.2 million tons per year coal-to-ethylene glycol project Author/Source: Chemical Industry Network, Coal Chemicals Date: May 29, 2018 Clicks: 32 The 2018 World Manufacturing Conference and China International Huishang Conference were held in Hefei, Anhui, from May 25 to 27. During the conference, a project to produce 1.2 million tons per year of ethylene glycol from coal, invested in by Zhejiang Tongkun Group and Shanghai Baosteel Gas, was officially signed. The project is located in the Longqiao Industrial Park in Lujiang. Zhejiang Tongkun Group and Shanghai Baosteel Gas will establish new companies in Lujiang to jointly build a plant with an annual production capacity of 1.2 million tons of coal-based ethylene glycol. Shanghai Baosteel Gas will use coal as raw material to produce syngas, which will then be used by Zhejiang Tongkun Holding Group to manufacture ethylene glycol products. Donghua Engineering is responsible for the preliminary work such as the feasibility study report for this project, and is expected to take on the EPC general contracting for it. The total investment in the project is approximately 11 billion yuan. Once the project is completed and operational, it will generate annual sales revenue of 13 billion yuan, annual profits and taxes of around 1.7 billion yuan, and annual tax payments of about 800 million yuan. On May 24, progress was made on the construction of a project to produce 1.2 million tons of ethylene glycol per year from syngas. Construction timeline: The first phase of the project is expected to start construction by October 31, 2018, and be completed and put into operation by December 31, 2020. The construction of Phase II of the project is expected to begin by December 31, 2021, and it is scheduled to be completed and put into operation by December 31, 2023. The first-phase project requires an investment of 5.5 billion yuan, of which Baosteel Gas will invest 2.5 billion yuan to build a facility capable of producing 1.5 billion cubic meters of coal-based syngas per year ； Zhejiang Tongkun Group has invested 3 billion yuan to build a plant capable of producing 600,000 tons of ethylene glycol per year from syngas. Upon completion and full operation of the first phase of the project, it is expected to generate sales revenue of 6.5 billion yuan, profits and taxes of around 850 million yuan, and tax payments of approximately 400 million yuan. After the commissioning of the first phase, Baosteel Gas and Tongkun Group will invest another 5.5 billion yuan to build new facilities capable of producing 1.5 billion cubic meters of syngas per year and 600,000 tons of coal-based ethylene glycol per year, respectively.