Construction halted on the 5 billion yuan Liaoning Lingyuan coal chemical project

Thread Content

The 5 billion yuan investment in the Liaoning Lingyuan coal chemical project has been halted. Author/Source: Huahua Net Coal Chemicals. Date: 2021-07-14. Clicks: 65. Recently, Lingyuan Iron and Steel Co., Ltd. issued a statement stating that, as the capacity requirements were not approved, the Approval and Service Bureau of Chaoyang Lingyuan Economic Development Zone has stopped processing all related procedures for Xuyang Linggang. As a result, the board of directors of Xuyang Linggang decided to halt the construction of the associated coke production facility. On December 26, 2019, upon approval at the 30th meeting of the seventh board of directors of Lingyuan Iron and Steel Co., Ltd. as well as at the fifth extraordinary general meeting of shareholders held in 2019, the company, together with Xuyang Chemical Co., Ltd. (which has since been renamed Xuyang Group Co., Ltd., abbreviated as \"Xuyang Group\"), jointly established Lingyuan Xuyang Linggang Energy Co., Ltd. (abbreviated as \"Xuyang Linggang\\") to build a 3-million-ton coke production project to support the company’s operations. It is reported that Xuyang Linggang’s registered capital is 1.667 billion yuan, to be paid in three installments, with each party contributing equally and at the same time. Among them, the company contributes 500.1 million yuan in cash, accounting for 30% of Xuyang Linggang’s registered capital, while Xuyang Group contributes 1.1669 billion yuan in cash, accounting for 70% of Xuyang Linggang’s registered capital. In accordance with the Articles of Association of Xuyang Linggang, the first installment of registered capital in the amount of 420 million yuan must be contributed within one year after the establishment of Xuyang Linggang. Since, within the first year after its establishment, Xuyang Linggang was primarily engaged in handling various procedures such as project approvals, as well as carrying out work on project design and feasibility studies, its capital needs were relatively low. Following consultations among the shareholders, they agreed unanimously to contribute their registered capital in proportion to the capital requirements of the Xuyang Linggang project over time. As of the date of disclosure of this announcement, Xuyang Linggang’s paid-in registered capital was 100 million yuan, with the company contributing 30% of this amount, namely 30 million yuan, as its share of the registered capital. Recently, as the production capacity quota was not **approved**, the Approval and Service Bureau of Chaoyang Lingyuan Economic Development Zone halted all procedures related to Xuyang Linggang. The board of directors of Xuyang Linggang decided to suspend the construction of the associated coke plant. The scale of this project is 3 million tons of coking capacity, 600 million cubic meters per year of hydrogen production, 200 million cubic meters per year of nitrogen production, 300,000 tons of liquid ammonia, 5 million square meters of waste heat heating capacity, along with supporting auxiliary facilities. The total investment for the project is approximately 5 billion RMB, with a land area of 1,400 mu and a construction period of 4 years. Upon completion, the project is expected to have an annual production capacity of 3 million tons of coking and other fine chemical products, with most of these coking products being supplied to Lingang Steel Co., Ltd.