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Shida Shenghua (603026.SH) and Yulin Chemical signed a framework agreement on investment cooperation for a dimethyl carbonate project

2022-09-22View Original

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Shida Shenghua (603026.SH) and Yulin Chemical signed a framework agreement for investment cooperation in a dimethyl carbonate project. According to the Zhitong Finance APP, Shida Shenghua (603026.SH) issued a statement stating that it has entered into a \"Framework Agreement on Investment Cooperation\" (hereinafter referred to as the \"Framework Agreement\" or \"this Agreement\") with Shaanxi Coal Group Yulin Chemical Co., Ltd. (“Yulin Chemical”), reaching an agreement regarding the intention to invest together in a dimethyl carbonate project in Yulin City, Shaanxi Province. It is reported that the project plans to invest in the construction of a production facility capable of producing 500,000 tons per year of dimethyl carbonate (DMC), along with the necessary auxiliary and utility systems. The project will utilize an advanced gas-phase oxidation carbonylation process to produce 500,000 tons per year of battery-grade DMC, while an ester exchange method will be used to produce 40,000 tons per year of battery-grade EMC. The construction of this facility will be carried out by a joint venture subsidiary affiliated with Shaanxi Coal Group Yulin Chemical Co., Ltd. Shenghua New Materials Group Co., Ltd. will contribute capital in the form of monetary funds to increase the capital stock; it will act as a new investor for the joint venture subsidiary. The specific amount and proportion of investment will be determined according to the agreements to be signed in the future.

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