Construction of Shandong Yankuang Yihua’s 200,000-ton dimethylformamide project begins
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2009-1-23 Recently, the project to produce 200,000 tons of dimethylformamide per year at Shandong Yankuang Yihua Company began construction. This project is a **supported initiative; it represents the group’s new strategy of diversifying its product portfolio as part of industrial structure adjustment, and marks the initial establishment of Yankuang Yihua Company’s efforts to develop an integrated coal chemical industry base that combines fertilizer production, chemical manufacturing, heat generation, and power production. The dimethylformamide production plant of Yihua Company features a simple process flow. It serves as an important raw material in organic chemical manufacturing, as well as an intermediate for pesticides and pharmaceuticals. It is also an excellent solvent and an absorbent for various gases, and is widely used in organic synthesis, inorganic chemical production, pesticide manufacturing, petrochemical industry, synthetic fiber production, and artificial leather manufacturing. The project construction period is 30 months. By then, Yihua Company will be capable of producing 500,000 tons of urea, 260,000 tons of methanol, and 200,000 tons of dimethylformamide per year.
DMF is already facing severe overcapacity in the domestic market! Yankuang’s DMF project is merely a cover; the real purpose is to produce methanol, synthetic ammonia, urea, and other products. New urea production facilities are not allowed in Shandong Province, as urea is classified as an industry subject to restrictions under the province’s overall industrial development plan. Although there is encouragement for such projects, Shandong’s urea production capacity already exceeds the province’s demand. 95% of the raw material coal needed for urea production comes from other provinces, resulting in significant pressures related to transportation, environmental protection, and industrial electricity usage. Moreover, the preferential electricity price subsidies do not benefit this province but instead go to other provinces! Ahhhh! !