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Understand in one article how this top 50 private enterprise is structuring its operations in the coal chemical industry Author/Source: Huahua Net Coal Chemicals Date: 2019-10-14 Clicks: 32 The Hope Group is currently composed of four major subsidiaries led by the Liu brothers: Dongfang Hope, Huaxi Hope, and New Hope. The companies involved in coal chemical projects are mainly Dongfang Hope Co., Ltd. and New Hope Group Co., Ltd.; in particular, Dongfang Hope Group focuses on the development of coal chemicals and has undertaken numerous such projects. By the end of 2017, Hope Group had over 1,500 companies both domestically and abroad, with sales revenue exceeding 200 billion yuan. I. Dongfang Hope Group Co., Ltd. The predecessor of Dongfang Hope Group was the Hope Group, founded in 1982 by Liu Yongxing and his three brothers. Starting out with raising chicks and quails, they gradually developed the Hope Group into China’s largest feed company. In 1995, Liu Yongxing, determined to enter the heavy chemical industry, separated from his family to start his own business and founded Dongfang Hope Group. It has now become a mega private enterprise group that integrates agriculture, heavy industry, and chemical industry. The heavy and chemical industry is involved in sectors such as electricity, non-ferrous metals, biochemistry, coal chemistry, chlor-alkali chemistry, petrochemicals, mining, and building materials. It has established large-scale heavy and chemical plants for thermal power generation, aluminum electrolysis, alumina production, methanol synthesis, dimethyl ether production, PVC manufacturing, PTA production, etc., in regions such as Xinjiang, Inner Mongolia, Chongqing, Henan, and Shanxi. There are over 150 existing enterprises, with an annual output value of nearly 70 billion yuan. Currently, there are 4 coal chemical projects involved, namely the methanol/dimethyl ether projects of Inner Mongolia Hulunbuir Dongneng Chemical Co., Ltd. and Chongqing Wansheng Coal Chemical Co., Ltd., all of which have been put into operation. Plans are currently in place to build a 1.4 million-ton coal-to-olefins project in Hohhot, Inner Mongolia, and a 1.8 million-ton coal-to-olefins project in Zhundong, Xinjiang. In addition, it has established a chlor-alkali industry chain in Baotou, Inner Mongolia, under the company name Baotou Sea Level Polymer Industry Co., Ltd. 1. The 200,000-ton coal-to-methanol and 100,000-ton dimethyl ether project in Hulunbuir, Inner Mongolia. Company profile: Hulunbuir Dongneng Chemical Co., Ltd. is a coal chemical enterprise established in Inner Mongolia through a joint venture between Dongfang Hope Group Co., Ltd. (20%) and Shanghai Heavy Industry Investment Co., Ltd. (80%). The company was founded at the beginning of 2007, with a registered capital of 400 million yuan. It also invested in Hulunbuir Shenbao Dongneng Coal Co., Ltd., holding a 42.86% stake. Project location: Located in the Coal Chemical Industry Park of Chenqi, Hulunbuir, Inner Mongolia. Project planning: Using lignite as raw material, the overall plan is to produce 1.2 million tons of methanol and 300,000 tons of dimethyl ether per year; phase one of the project, with an output of 200,000 tons of methanol and 100,000 tons of dimethyl ether, has already been completed. Project progress: Construction began in April 2008, and it was completed in July 2009. On June 13, 2012, the approval for the environmental protection inspection upon completion was obtained from the Environmental Protection Department of Inner Mongolia Autonomous Region. 2. The 1.4 million tons per year coal-to-olefins project in Hohhot, Inner Mongolia: On February 6, 2018, the people’s governments of Ordos City and Dalat Banner in Inner Mongolia, together with Shanghai Dongfang Hope Group, held a signing ceremony in Hohhot for the construction of a facility capable of producing 3.6 million tons per year of methanol, which will be converted into 1.4 million tons per year of olefins. It is understood that the three parties have agreed to build a project to convert 3.6 million tons of methanol into 1.4 million tons of olefins, a project to produce 450,000 tons of methionine, as well as a project for raising 6 million pigs along with related planting, feed, and slaughtering facilities. The total investment for the project is approximately 72 billion yuan, of which 60 billion yuan is allocated to the coal chemical industry project; the construction period is expected to be six years. 3. Chongqing Coal-based 300,000-ton Methanol and 100,000-ton Dimethyl Ether Project Company Profile: Chongqing Wansheng Coal Chemical Co., Ltd. is a joint venture established in August 2007 by Shanghai Heavy Industry Investment Co., Ltd. (80.49%) and Dongfang Hope Group Co., Ltd. (19.51%). Project planning: The plant is designed to produce 300,000 tons of methanol and 100,000 tons of dimethyl ether per year; the methanol is mainly used internally while dimethyl ether is primarily intended for sale. Construction began in 2008, and the plant was successfully put into operation in 2011. Project location: The project is situated in Guanba Town, Wansheng District, Chongqing. Project technology: It employs production process technologies such as multi-component slurry pressurized gasification, low-temperature methanol washing for desulfurization and decarburization purification, Claus sulfur recovery process, and shell-and-tube external cooling–insulated composite methanol synthesis. 4. The 1.8 million-ton coal-to-olefins project in Zhundong, Xinjiang. Company overview: In December 2010, Dongfang Hope Group established the Xinjiang XiAlu branch in Wucaiwan, within the **-level economic and technological development zone in Zhundong, Xinjiang, with a registered capital of 5.2 billion yuan. The Xixi Aluminum Industry Zone in Xinjiang makes full use of the region’s abundant coal resources in Zhundong to vigorously develop circular economy industrial chains such as coal-electricity-aluminum and advanced aluminum processing, coal-electricity-silicon-polysilicon-solar panels-solar power generation, and coal-coal chemicals-fine chemicals in the Wucuiwan area of Zhundong. Currently, it has departments such as the Thermoelectric Division, Aluminum Electrolysis Division, Industrial Silicon Division, Polysilicon Division, Carbon Division, and Coal Mining Division. Project planning: The overall plan for the Xinjiang Xiliu area project is to produce 2.4 million tons of electrolytic aluminum, 1.2 million tons of pre-baked anode carbon blocks, 450,000 tons of industrial silicon, and 120,000 tons of polysilicon per year. It also includes the construction of power generation units with a total capacity of 6,840 MW (12*350 MW and 4*660 MW). Additionally, there are plans to build a coal-to-olefins plant with an annual production capacity of 1.8 million tons, as well as a methionine plant with an annual production capacity of 440,000 tons. Dongfang Hope Group plans to build a circular industrial park in Zhundong during the 13th Five-Year Plan period, focusing on the integrated utilization of coal chemicals, coal-fired power, coal ash, and fine chemicals. On April 7, 2017, at the groundbreaking ceremony for key projects held in the Silicon-Based New Materials Industrial Park of the Zhundong Economic and Technological Development Zone in Changji Prefecture, 21 out of the 45 projects that were launched simultaneously were industrial projects. Among them was Xinjiang Dongfang Hope’s “Liu Gu Feng Deng” circular industry complex; the Chemical Valley is designed to produce high-value chemical products such as coal-derived olefins and methionine using coal as raw material. II. New Hope Group Co., Ltd. Company Overview: In 1997, New Hope Group officially entered the chemical industry. New Hope Chemical Investment Co., Ltd., established in September 2006, is a corporate entity under the New Hope Group that specializes in the production and investment management of phosphorus chemicals, chlor-alkali chemicals, potassium chemicals, coal chemicals, and more. Among them, there is only one coal chemical project, namely Bijie Donghua New Energy Co., Ltd., which does not have any coal chemical projects in Inner Mongolia. The parent-and-subsidiary company, Qianxi County Qianxi Coal Chemical Investment Co., Ltd., has had its 100% equity acquired by Henan Province State-owned Holding and Operation Co., Ltd. and Qianxi County Industrial Base Operation and Trade Co., Ltd. New Hope Group also has a 900,000-ton PTA project under construction in Chongqing, which was put into trial operation in November 2009. Facing a downturn in the PTA industry, it was shut down for an extended period at the beginning of 2014 and restarted in February 2017. The 220,000-ton coal-to-methanol project in Bijie, Guizhou: Bijie Donghua New Energy Co., Ltd. is a chemical enterprise established jointly by New Hope Group and China Everbright Group in order to utilize the abundant coal resources in Bijie. The company was founded in April 2006 and is located in Toubuqiao Village, Yachi Town, Qixingguan District, Bijie City. The first phase, involving 220,000 tons of methanol production, requires an investment of 800 million yuan. Construction of the project began in February 2008, and trial production started on December 30, 2009.