Construction has begun on the main facility for the Phase 3 polyoxymethylene project at Kaifeng Longhua; once completed, it will become Asia’s largest polyoxymethylene production base

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On March 20, the inauguration ceremony for the main production facility of Kaifeng Longhua Phase III project, a key project of Henan Coal Chemical Group with an annual production capacity of 60,000 tons of polyoxymethylene, was held at Kaifeng Longhua. Once this project is completed and put into operation, along with the first and second phases that already produce 40,000 tons of polyoxymethylene per year, Kaifeng Longhua will become Asia’s largest production base for polyoxymethylene. 　　 　　The Kaifeng Longhua polyoxymethylene project is a priority project that must be implemented and is given top priority by Henan Coal Chemical Industry. The 40,000-ton polyoxymethylene projects in phases I and II were mechanically completed two months ahead of schedule, and were put into operation three months earlier than planned. This represented a reduction in construction time of over one year compared to similar facilities in China, resulting in savings of more than 100 million yuan in investment costs. The project successfully produced polyoxymethylene products on September 26, 2010. The project construction has created numerous miracles in the history of similar installations built in China, making it a model and benchmark project among the group’s ongoing projects. 　　 　　As a follow-up project to the polyoxymethylene initiative, the third phase of the project, which aims to produce 60,000 tons of polyoxymethylene per year, is planned to require an investment of 2.1 billion yuan, with a total construction period of 26 months. Once the project is fully completed and put into operation, it is expected that the annual output value will exceed 1.5 billion yuan, with profits and taxes reaching over 500 million yuan. By then, the company will become Asia’s largest production base for new polyoxymethylene materials, which will effectively alleviate the situation in which China relies heavily on imports for this material. At present, the preliminary preparations for Phase 3 have been completed, and the pile foundation construction for the self-developed units has begun. 　　 　　Guo Ke, vice mayor of Kaifeng City, and Chai Minggui, deputy general manager of Henan Coal Chemical Group, attended the commencement ceremony and delivered speeches; officials from Kaifeng City and Henan Coal Chemical Group were also present at the ceremony. 　　 　　It is understood that the main raw material for producing polyoxymethylene is methanol, and methanol in China is primarily derived from coal. Currently, there is a severe overcapacity of methanol production in the country, and developing polyoxymethylene projects is an effective way to address this issue. Based on current market prices, the value of coal increases by more than 7 times after it is converted into polyoxymethylene. 　　 　　Another update: On March 20, the inauguration ceremonies for the Kaifeng Functional and Structural Chemical Materials Engineering Technology Research Center and the Kaifeng Polyoxymethylene-Based New Materials Key Laboratory were held at Kaifeng Longhua. This marked the elevation of these two research institutions under the company to municipal-level research facilities. Guo Ke, Vice Mayor of Kaifeng City, and Chai Minggui, Deputy General Manager of Henan Coal Chemical, attended the unveiling ceremony.