[Ocean Chemical News] Hengyi Petrochemical’s 400,000 tons/year caprolactam capacity expansion and transformation project was put into operation

1. Investment Overview In order to further reduce the unit operating cost and unit production cost of caprolactam, enhance the market competitiveness of caprolactam products, and increase the profit growth point of caprolactam products, according to the company's development and main business plan, Hengyi Petrochemical Co., Ltd. (hereinafter referred to as the "Company" or "Hengyi Petrochemical") plans to invest in the construction of a 400,000 tons/year caprolactam capacity expansion and transformation project (hereinafter referred to as the "project") through a joint venture company for the production of caprolactam products. Based on the existing stable production of 200,000 tons/year caprolactam products, the project will be expanded to a production capacity of 400,000 tons/year. It will be implemented in two phases. The first phase project will complete the transformation of the 200,000 tons/year production capacity into 300,000 tons/year. The second phase project will complete the 300,000 tons/year production capacity. The annual production capacity will be transformed to 400,000 tons/year. The project land is located in the Hangzhou Dajiangdong Industrial Cluster (i.e., the existing surplus land for the 200,000 tons/year production equipment factory). The project land area is expected to be 254.89 acres, and the total investment is RMB 2.47885 million. The main investment entity of the project is Zhejiang Baling Hengyi Caprolactam Co., Ltd. Hengyi Caprolactam Co., Ltd. is 50% owned by Zhejiang Hengyi Petrochemical Co., Ltd., a subsidiary of Hengyi Petrochemical Co., Ltd., and China Petroleum & Chemical Corporation. The "Caprolactam Project with an annual output of 200,000 tons" was completed and put into operation in August 2012.

2. Investment Subject and Main Contents of the Project (1) Project Investment Subject The project is implemented by Zhejiang Baling Hengyi Caprolactam Co., Ltd. as the investment subject. It was established on January 10, 2008, with registered capital: 1.2 billion yuan, located in Linjiang Industrial Park (Nongerchang), Xiaoshan District, Hangzhou City, legal representative: Wang Songlin. The company's main business: Production: Light oil, X oil, sulfur, benzene distillation residue, hydrogen peroxide, water gas, hydrogen, cyclohexane, * * ； Recycle: Toluene, tert-butanol, benzene, heavy aromatics (1,2,4-trimethylbenzene), methanol (the above business scope can only be operated within the validity period of the license). Production: Caprolactam, cyclohexanol, anhydrous sulfate (by-product), sodium carbonate (by-product) (except dangerous chemicals and precursor chemicals) ； Import and export business of goods and technology (if the above-mentioned business scope involves pre-approval items, it can only be operated within the validity period of the license).

On November 25, Zhejiang Baling Hengyi Petrochemical Co., Ltd.’s “300,000 tons/year caprolactam capacity expansion and transformation” project was put into operation. According to the company's development and main business plan, the project invested 2,478.85 million yuan to build a 400,000 tons/year caprolactam capacity expansion and transformation project for the production of caprolactam products. The project is implemented in two phases. The first phase of the project will complete the transformation of the annual production capacity from 200,000 tons/year to 300,000 tons/year. The second phase of the project will complete the transformation of the annual production capacity of 300,000 tons/year to 400,000 tons/year. It is expected that the second phase of the project "400,000 tons/year caprolactam expansion and transformation" will be completed before the end of 2018.

Two liftings of one hundred thousand tons

On June 29, the sky cleared up after the rain. At the site of Lunan Chemical's planned annual production of 300,000 tons of caprolactam and supporting engineering projects, colorful flags were fluttering in the early summer breeze. Looking around, we saw a scene of vibrant development. At 10:58 a.m., a mobilization meeting to start the project with an annual output of 300,000 tons of caprolactam and supporting projects was held at the proposed construction site. Ren Yi, assistant to the general manager of the group company, secretary of the party committee and chairman of the chemical company, presided over the meeting. Ren Yi said that in recent years, Yankuang Group has attached great importance to the transformation and development of the chemical industry, positioning Lunan Chemical Industry as the core chemical enterprise of Yankuang headquarters, and is committed to building a high-end chemical industry demonstration park in Lunan. The start of construction of the caprolactam project with an annual output of 300,000 tons and supporting engineering projects has once again injected strong impetus into the leapfrog development of Lunan Chemical Industry, reflecting Yankuang Group's trust and trust in Lunan Chemical Industry. Zaozhuang and Tengzhou municipal committees and municipal * * and relevant departments have also made every effort to accelerate the transformation of enterprises into new and old driving forces, provided many preferential policies to promote transformation, upgrading and development, and created a good external environment.

Caprolactam is an important organic chemical raw material that can be made into textiles, industrial yarns, carpet yarns and food packaging. It is widely used in automobiles, electronic appliances, packaging, machinery, sports and leisure and daily necessities. Since the raw materials for the production of caprolactam are liquid ammonia, hydrogen, etc. from traditional coal chemical industry, this project is also an important project for the transformation and upgrading of the traditional chemical industry and the conversion of old and new kinetic energy. Lunan Chemical's annual production capacity of 300,000 tons of caprolactam and supporting engineering projects were included in the second batch of selected projects in Shandong Province's major project library for conversion of old and new kinetic energy in June 2019. The project adopts the internationally advanced ammonia oximation method to produce caprolactam technology. This process route has the characteristics of reasonable flow, small amount of by-products, low equipment investment, low consumption indicators, small environmental impact, and good product quality. The total investment in the project and supporting projects is approximately 5.1 billion yuan. The construction content includes a caprolactam unit with an annual output of 300,000 tons, an ammonium sulfate unit with an annual output of 450,000 tons, and an annual output of 270,000 tons. * * The device, a sulfuric acid device with an annual output of 400,000 tons, a hydrogen peroxide device with an annual output of 400,000 tons, a polymerization slicing device with an annual output of 200,000 tons, a coal distribution center and supporting public engineering auxiliary facilities will become the largest single caprolactam production capacity device in China. It is expected to be completed and put into operation in June 2021. It is expected that the annual sales revenue will be approximately 4.56 billion yuan, and the profit and tax will be 460 million yuan. The products of the project will be able to meet the product quality requirements of the caprolactam high-end market, which is mainly high-speed spinning chips, and can realize the transformation from traditional coal chemical enterprises to high-end chemical industry and new materials fields.