Signing of the engineering design contract for the ethylene glycol project in Shanxi

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On February 6, 2018, Donghua Technology issued a announcement stating that the company had signed an Engineering Design Contract for a 600,000 tons per year coal-based ethylene glycol production project (with an initial capacity of 300,000 tons per year) with Shanxi Songlan Chemical Technology Co., Ltd. on February 1. The contract stipulates that Donghua Engineering Company is responsible for the design of the project’s foundation and the detailed engineering aspects; the contract value is 33.5 million RMB, with a contract duration of approximately 16 months. Within 7 days after the entry into force of this contract, Songlan Chemical shall pay 6.7 million yuan as an advance payment ； The remaining design fees shall be paid proportionally according to the relevant drawing delivery milestones. ? On February 2, 2018, Shanxi Songlan, with its 600,000 tons per year capacity for coal-based ethylene glycol production, signed a process package agreement with Beijing Qingchuang Jinhua Technology Co., Ltd. This project is another coal-based ethylene glycol production facility, following the 1 million tons per year coal-based ethylene glycol plant at Xinjiang Tianye, since the commissioning of Jinhua Furnace 3.0. On February 9, 2018, a meeting to discuss the process package for Shanxi Songlan Chemical Technology Co., Ltd.’s new coal-based ethylene glycol production project with an annual capacity of 600,000 tons (300,000 tons in the first phase) was held at Donghua Engineering Technology Co., Ltd. Advertising? Take a look. Ethylene glycol is produced using local high ash fusion point coal from Shuozhou, Shanxi, together with the water-cooled wall waste boiler gasification furnace technology (Jinhua Furnace 3.0) developed by Beijing Qingchuang Jinhua Technology Co., Ltd., as well as the CTEG technology provided by the High Chemistry and Donghua Technology consortium. The main components of this project include coal storage and transportation facilities, gasification units, purification systems, H2/CO separation equipment, dimethyl oxalate production facilities, ethylene glycol production units, as well as supporting utility systems such as thermal power and circulating water systems. The total investment for this project is 4,848,586,000 yuan. ? The site proposed for the new 600,000 tons per year coal-based ethylene glycol production facility of Shanxi Songlan Chemical Technology Co., Ltd. (with an initial capacity of 300,000 tons per year) is located within the Low-Carbon Circular Economy Industrial Park in Beizhouzhuang Village, Shanyin County, Shuozhou City. The planned production capacity is 300,000 tons per year of ethylene glycol. On September 28, 2017, the Development and Reform Bureau of Shanyin County filed records for this project under document number Shan Fa Bei Zi 164. Songlan Chemical was established in October 2016, jointly founded by Li Yuxin, Zhang Xiuping, and Beijing Ward Rongjin Investment Holding Co., Ltd. The legal representative is Mr. Meng Wei, and the registered capital is 100 million RMB. The company is mainly engaged in the production and sales of active calcium oxide, desulfurization agents, calcium hydroxide for dust removal, gravel, stone powder, high-calcium powder, acrylic acids and fats, ethylene glycol, and other products.