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Tongkun’s 1.2 million-ton coal-based ethylene glycol project on hold Author/Source: Coal-Based New Materials Date: 2021-07-16 Clicks: 29 According to a report from the Financial Research Center of Tonghuashun (300033) dated June 29, some investors asked Tongkun Shares (601233) about the progress of its projects. On April 15, the company announced its intention to acquire Anhui Youshun New Materials Co., Ltd., which is owned by Tongkun Group. In March, an environmental impact assessment was published for that company’s 1.8 million-ton project aimed at producing new types of green, differentiated, and functional fibers through integrated processing. In 2020, the company signed agreements with Baosteel and Donghua Technology (002140) to carry out a 1.2 million-ton coal-based ethylene glycol project. Investors are interested in knowing how far along this project is Is the 1.8 million-ton polyester project an extension of the coal-based ethylene glycol project, or a replacement for it? If it is the latter, then what about the agreements with Baosteel and Donghua Technology? The company replied, \"Hello, dear investor!\" The coal-based ethylene glycol project is a project planned to be implemented by the company’s controlling shareholder, Tongkun Holding. For various reasons, Tongkun Holdings is not pursuing this project at this stage. In order to further enhance the company’s overall strength, integrate relevant resources, and facilitate strategic planning as well as future development, Tongkun Shares, through a board meeting, decided to acquire 100% of the shares in Anhui Youshun New Materials Co., Ltd., which is held by Tongkun Holdings. Thank you for your attention and support to the company. The total investment for this project is 11.4 billion yuan, with a total land area of around 1,750 mu. Among this, Shanghai Baosteel Gas Co., Ltd. will build a project to produce 1.2 million tons of ethylene glycol per year, using coal as raw material; the production capacity for synthetic gas will be 2.9 billion standard cubic meters per year ； Zhejiang Tongkun Holding Group is building a project to produce 1.2 million tons of ethylene glycol per year using syngas; the syngas used in this production comes from Shanghai Baosteel Gas. Project timeline: On April 7, 2018, a signing ceremony was held for the project to produce 1.2 million tons of coal-based ethylene glycol per year in Lujiang, with investment from Zhejiang Tongkun Group and Shanghai Baosteel Gas. On December 5, 2019, the groundbreaking ceremony for a project capable of producing 1.2 million tons of ethylene glycol per year, along with the necessary synthesis gas, was held in the Longqiao Industrial Park in Lujiang. This project was jointly funded by Zhejiang Tongkun Holding Group and Shanghai Baosteel Gas Co., Ltd. On February 24, 2020, Anhui Youshun New Materials Co., Ltd. and Donghua Technology signed an engineering design contract in Lujiang for a project to produce 1.2 million tons of ethylene glycol per year from syngas (with the first phase of the project aiming to produce 600,000 tons of ethylene glycol per year).