Henan to start construction of two 200,000-ton coal-based ethylene glycol projects

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Henan to start construction of two 200,000-ton coal-based ethylene glycol projects On November 17-18, 2009, construction began on two projects capable of producing 200,000 tons of coal-based ethylene glycol per year each. These projects were jointly funded by Henan Coal and Chemical Industry Group and Tongliao Jinmei Chemical Industry Co., Ltd., and are located in Mengjin County of Luoyang in Henan Province and Yongcheng City in Shangqiu Province, both in Henan. This coal-based ethylene glycol project has a capacity of 200,000 tons per year; its investment amount is 2.6 billion yuan, and the construction period is 30 months. Once completed, it will be able to generate annual sales revenue of 1.5 billion yuan and an annual total profit and tax amount of 450 million yuan. On July 16 of that previous year, Danhua Technology and its holding subsidiary Tongliao Jinmei Chemical Co., Ltd., the second-largest shareholder Shanghai Shengyu Enterprise Investment Co., Ltd., and Henan Coal Chemical Sifang signed a strategic cooperation framework agreement in Zhengzhou. The four parties agreed that Henan Coal Chemical would become the second-largest shareholder of Tongliao Jinmei Chemical Co., Ltd. through the acquisition of shares, and that it would work together with Danhua Technology to build the second phase of the production facility in Tongliao, with an annual capacity of 400,000 tons of ethylene glycol. At the same time, Tongliao Jinmei Chemical Co., Ltd. will cooperate with Henan Coal Chemical to establish a joint venture to build projects such as ethylene glycol in Luoyang and Yongcheng, Henan, with both parties holding 50%:50% of the shares. Furthermore, when the conditions are right, the two parties will also jointly invest in building an ethylene glycol project in a third location outside Tongliao and Henan. The 200,000 tons per year coal-to-ethylene glycol production project of the first phase of Jinmei Chemical Co., Ltd., located in Tongliao City, Inner Mongolia, is currently in the trial production stage.