All production facilities and auxiliary systems of Inner Mongolia Cornell Chemical’s 300,000-ton ethylene glycol project are up for public auction

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Public auction of all production facilities and auxiliary systems for Inner Mongolia Cornell Chemical’s 300,000-ton ethylene glycol project / Author/Source: Huahua Network – Coal Chemicals / Date: 2020-12-23 / Clicks: 6 Recently, the Intermediate People’s Court of Tongliao City in Inner Mongolia Autonomous Region held a public auction via the Alibaba Auction platform for all the production facilities and auxiliary systems associated with Inner Mongolia Cornell Chemical Industry Co., Ltd.’s 300,000-ton per year ethylene glycol project, which is located in the Lubei High-Tech Coal Chemical Industry Park in Zhalute Banner, Tongliao City. Specifically including: fixed assets – buildings and structures, equipment and construction materials, electronic equipment, and vehicles ； Under construction = railway lines, buildings, structures and other auxiliary facilities, machinery and equipment, electrical equipment and instruments ； Intangible assets – land and other intangible assets. The overall starting bid price for the sale of these assets is 1,922,880,000 yuan. According to the assessment report issued by Cinda Appraisal Company, titled \"Report on the Asset Appraisal of All Assets Other than Current Assets Involved in the Project of 300,000 tons per year of coal-based ethylene glycol produced by Donghua Engineering Technology Co., Ltd., as applied for by the Intermediate People’s Court of Tongliao City, Inner Mongolia Autonomous Region, against Inner Mongolia Cornell Chemical Industry Co., Ltd.\" (Document No. NeiCindaAppraisal[2019]19), with October 28, 2019, set as the assessment date, the appraised value of the assets in question on that date was 2.828 billion RMB. The 300,000 tons per year ethylene glycol production project of Inner Mongolia Cornell Chemical Industry Co., Ltd. is located in the Lubei Industrial Park in Zhalute Banner, Inner Mongolia. With a total investment of 5.88 billion yuan, it has an annual production capacity of 300,000 tons of ethylene glycol. The project is EPC-general contracted by Donghua Engineering Technology Co., Ltd. The ethylene glycol production process utilizes a high-chemical synthesis gas method, while the gasification technology employs the Corin dry powder gasification process. The first phase of the project involves the construction of 1 set of internal compression air separation unit with a capacity of 52,000 Nm3/h, 1 coal-to-hydrogen gasification unit with a capacity of 110,000 Nm3/h (comprising two pulverized coal pressurized gasification furnaces and gas purification equipment), 1 ethylene glycol production plant with an annual output of 300,000 tons, 1 thermoelectric power plant (comprising 4 circulating fluidized bed steam boilers with a capacity of 280 tons/hour each + 2 steam turbine generators with a capacity of 25 MW each), 1 wastewater treatment plant, 1 dedicated railway line, as well as various supporting utility facilities. The on-site civil work for this project commenced on May 20, 2013, and actual construction on site started in April 2014; the full-line commissioning was originally scheduled for September 2016. On May 8, 2017, the Higher People’s Court of Inner Mongolia officially accepted the case for handling. Donghua Engineering Technology Co., Ltd. filed a civil lawsuit with the Inner Mongolia High Court regarding the overdue payment for the project progress related to the EPC/turnkey engineering contract for the 300,000 tons per year coal-based ethylene glycol production project carried out by Donghua Technology for Inner Mongolia Cornell Chemical Industry Co., Ltd. On May 22, 2018, the Higher People’s Court of Inner Mongolia issued a first-instance judgment in the lawsuit between Donghua Engineering Technology Co., Ltd. and Inner Mongolia Cornell. The court ordered Inner Mongolia Cornell to pay Donghua Engineering Technology 505,549,400 yuan as payment for the progress of the project, as well as 32,431,579 yuan in interest accrued up to February 28, 2017. Additionally, the company was required to pay interest from March 1, 2017, until the actual date of payment (calculated at the interest rate applicable to similar loans by the People’s Bank of China). Neimenggu Cornell was not satisfied with the judgment rendered in the first instance by the Neimenggu High Court, and appealed to the Supreme People’s Court. On October 16, 2018, the Supreme People’s Court ruled to dismiss the appeal and uphold the original judgment. In March 2019, Donghua Engineering Technology Co., Ltd. applied to the Tongliao Intermediate People’s Court to order the comprehensive seizure, evaluation, auction, and sale of the existing assets related to the 300,000 tons per year coal-based ethylene glycol production project, and requested that the court appoint qualified evaluation and appraisal agencies as well as auction support organizations to handle these matters. According to the Alibaba Auction platform, this auction is the third attempt to sell the item, following two previous unsuccessful auctions.