[Haichuan Information Sharing] Jinfat Technology invests in the construction of a 1.2 million tons per year polypropylene thermoplastic elastomer (PTPE) plant in Ningbo
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Tonight, Kingfa Technology also announced that in order to establish a complete production chain for polypropylene and enhance the company’s sustainable profitability, its wholly-owned subsidiary, Ningbo Kingfa New Materials Co., Ltd. (hereinafter referred to as “Ningbo Kingfa”), plans to invest in the construction of a integrated project for producing 1.2 million tons per year of polypropylene thermoplastic elastomer (PTPE) and modified new materials in the Qingzhi Industrial Park in Beilun, Ningbo, Zhejiang Province. The total construction period for this project is estimated to be 34 months, with an overall investment of around 6.2 billion yuan. Jinfat Technology states that investing in and developing such projects helps the company establish partnerships with enterprises in the upstream industries, enhancing its control over and influence over raw materials. This facilitates the consolidation of the company’s position in the field of modified polypropylene, improves its profitability, and provides opportunities to enhance technological innovation across the entire supply chain, thereby allowing for further enhancement of the value of its products from a supply-chain perspective.
In May 2019, Jinfat Technology completed the acquisition of Ningbo Haiyue New Materials Co., Ltd., and renamed it Ningbo Jinfat New Materials Co., Ltd. Ningbo Jinfafa plans to launch the construction of a new project based on its existing production capacity, with the aim of replacing imported mid-to-high-end polypropylene in the market. Targeting the industry of mid-to-high-end modified plastic materials, it will employ advanced domestic and international production technologies to build a new \"1.2 million tons per year polypropylene thermoplastic elastomer (PTPE) and modified materials integrated project.\" On July 1, 2019, the Management Committee of Ningbo Economic and Technological Development Zone and Ningbo Jinfafa signed the \"Investment Framework Agreement for Ningbo Jinfafa New Materials Co., Ltd.\" regarding this project in Ningbo, Zhejiang Province
(II) Basic Information of the Project 1. Project Name: Ningbo Jinfafa New Materials Co., Ltd.’s 1.2 million tons per year polypropylene thermoplastic elastomer (PTPE) and modified new materials integrated project (Phase I) 2. Project Implementer: Ningbo Jinfafa New Materials Co., Ltd. (a company-controlled subsidiary). 3. Project location: Qingzhi Industrial Park, Beilun Xiaogang, Ningbo City, Zhejiang Province. 4. Project construction contents: a 600,000-ton/year propane dehydrogenation unit, a 400,000-ton/year polypropylene plant, a combined plant for producing polypropylene and modified polypropylene with a capacity of 400,000 tons/year, a 25,000-ton/year PSA hydrogen production unit, as well as a new low-temperature tank area and accompanying utility support facilities.
5. Project construction period: The total construction period (from the start of process package design to commissioning and operation) is initially estimated at 34 months; depending on the progress of equipment procurement and delivery, the project schedule can be adjusted or shortened accordingly. 6. Project investment estimate: The total investment is approximately 6.2 billion yuan, with the specific amount to be determined based on the actual progress of the project. 7. Source of funds: The funds for this project can come from internal capital or self-raised funds, with the amount of self-raised funds determined based on the approval obtained from financial institutions such as banks.