Yangmei Group enters fertilizer industry

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Yangquan Coal Industry Group recently signed a strategic reorganization agreement with Shandong Zibo Qilu No. 1 Fertilizer Co., Ltd. to incorporate Qilu No. 1 Chemical Fertilizer Co., Ltd., which is engaged in the fertilizer business, into the group, taking another big step towards strengthening and expanding the coal chemical industry by relying on the main coal business. 　　Since taking control of Qilu No.1 Chemical Industry in 2006, Yangmei Group has accelerated the development of the coal chemical industry based on its main coal business, initiated various tasks to reorganize Qilu No.1 Chemical Industry, and received approval from the Shanxi Provincial State-owned Assets Supervision and Administration Commission. At the end of February this year, Yangmei Group finally controlled Qilu Yihua with a 35% shareholding ratio. 　　Yangmei Group stated that the reorganization of Qilu No.1 Chemical Industry Co., Ltd. is an important part of Yangmei Group’s comprehensive strategy of integrating upstream and downstream coal. In accordance with the development strategy of "equal emphasis on coal and non-coal", through efforts in recent years, Yangmei Group has built four major circular economy industry chains: coal, electricity, aluminum, coalbed methane comprehensive utilization and development, coal chemical industry, and construction and real estate. 　　The reporter learned from Yangmei Group that Qilu First Chemical was founded in July 1969 and completed and put into operation in December 1972. It is my country's first domestic medium-sized nitrogen fertilizer plant that produces synthetic ammonia from refinery exhaust gas. The initial design capacity of the plant is to produce 60,000 tons of synthetic ammonia and 110,000 tons of urea annually. 　　Before the restructuring in December 2004, Qilu No.1 Chemical was the first fertilizer plant of Qilu Branch of Sinopec Corporation. After the restructuring, Qilu Chemical has become a private enterprise with completely independent legal person status. Its annual production capacity is 140,000 tons of synthetic ammonia, 230,000 tons of urea, 40,000 tons of combined methanol, 800,000 tons of steam, and 46 million kilowatt hours of electricity. The annual demand for anthracite lump coal is 200,000 tons. 　　Ding Lianjie, chairman and general manager of Qilu Yihua, said that in order to meet the company's development needs for raw materials, actively seeking cooperation with coal production companies is a strategic issue that Qilu Yihua must solve. During the adjustment of industrial structure, Yangmei Group made Qilu No.1 Chemical Co., Ltd. the first cooperative unit of a coal chemical enterprise, realizing the complementary advantages of both parties. 　　Expanding the coal chemical industry chain In recent years, in accordance with the principle of coal processing and conversion as the main line, on-site energy conversion and recycling, Yangmei Group has selectively entered related industries, established and expanded the coal chemical industry chain, and achieved upstream and downstream integration. 　　Through this reorganization, Yangmei Group will use the platform of Qilu Yihua to further develop coal chemicals and fine chemicals, achieve simultaneous development of fertilizers and chemicals, and give full play to Yangmei Group's advantages in on-site conversion and value-added coal products. 　　Shi Shengkui, vice chairman of Yangmei Group, said that after Qilu Yihua becomes a holding subsidiary of Yangmei Group, Yangmei Group will not only provide it with high-quality anthracite lump coal raw materials, but also provide necessary financial and material support. Qilu Yihua will also provide professional talents, market and technical support for the development of Yangmei Group's coal chemical industry. He said that this reorganization successfully pioneered Yangmei Group's entry into downstream fertilizer companies. 　　Prior to this, Yangmei Group had formed a coal, electricity and aluminum industry chain. The company uses low-quality coal and coal gangue to develop the downstream power industry, and takes advantage of abundant power to develop the electrolytic aluminum industry. Based on the expansion of electrolytic aluminum scale, it shifts from selling raw aluminum to the aluminum processing industry. ； At the same time, in order to ensure the supply of electrolytic aluminum raw materials, the alumina industry will be developed by taking advantage of the abundant bauxite resources in the Yangquan area.