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The company is in the process of shifting from soda ash production to a business focused on methanol. Building on its existing production capacity of 350,000 tons of soda ash, 130,000 tons of baking soda, and 50,000 tons of caustic soda, in 2007 the company’s 1 million-ton second-phase methanol plant in Inner Mongolia Boyuan, for which it holds a 51.2% stake, came online. Additionally, Inner Mongolia Suli Natural Gas Chemical Company, in which the company holds an 88.76% stake, has a production capacity of 200,000 tons of methanol; this capacity can be increased to 350,000 tons after technical upgrades in 2008. As a result, by 2008 the company will have a total methanol production capacity of 1.35 million tons, making it one of the few listed companies in China that focuses primarily on methanol production. To avoid the continuous rise in natural gas prices and the risks associated with relying on a single raw material, the company also plans to take advantage of Inner Mongolia’s abundant coal resources. Through its 45% stake in Mengda New Energy Company, it intends to build a coal-based chemical plant capable of producing 1.8 million tons of methanol and 1.2 million tons of dimethyl ether. The first phase of this project, which will involve the production of 600,000 tons of methanol, is set to begin construction in 2008, with operation expected to start in 2009. In addition, the 100,000-ton DMF production facility at Yuanxing Jiangshan Chemical, in which the company holds a 49% stake, is set to come online in 2009, further extending the methanol industry chain. Comment: Yuanxing Energy is a newcomer focused on methanol production capacity.