Public Notice on the Approval Process for the Integrated Transformation and Upgrading Project of the C4 Industry by Shandong Binzhou Lianhua New Materials Co., Ltd

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On July 8, the approval notice for the integrated transformation and upgrading project of the C4 industry at Shandong Lianhua New Materials Co., Ltd. was released. Project Name: Integration, Transformation and Upgrading Project of the C4 Industry by Shandong Lianhua New Materials Co., Ltd ； Project location: Within the existing factory area of Shandong Lianhua New Materials Co., Ltd., Yangxin Chemical Industry Park, Binzhou City ； Main construction contents: This project will be carried out in two phases. The first phase involves a comprehensive upgrade and equipment replacement for the 60,000 tons per year MTBE plant. By constructing a 40,000-ton/year MTBE feed pretreatment unit and optimizing the feed allocation, a highly efficient integrated production system is established in conjunction with existing facilities to produce high-quality, high-value-added high-olefin tetrahydrocarbon products ； The second-phase project involves a comprehensive upgrade and renovation of core production facilities such as the 300,000 tons per year gas fractionation unit, aiming to promote their transformation into higher-value assets. After the renovation, an efficient and advanced butene-1 production line with an annual capacity of 20,000 tons will be established, including a deep etherification unit, a selective hydrogenation unit, and a butene-1 separation unit. This project makes use of the existing public auxiliary facilities and the company’s current infrastructure to meet its requirements, without requiring any additional land, and its safety production conditions comply with relevant regulations. Project investment: 192.9222 million yuan. It is reported that the gas separation unit, as well as the MTBE raw materials and products produced by Lianhua Company, are highly affected by market factors, resulting in overall losses. Since July 2020, these units have been idle. The plan is to make use of the existing gas separation unit by carrying out necessary modifications in order to produce butene-1, thereby revitalizing these idle assets and increasing the company’s profits. Shandong Lianhua New Materials Co., Ltd. is a wholly-owned subsidiary of Shandong Binhua Binyang Combustion Chemicals Co., Ltd. Shandong Binhua Binyang Combustion Chemical Co., Ltd. (hereinafter referred to as “Binyang Company”) was established in Yangxin Economic Development Zone in May 2006. It has a registered capital of 600 million yuan, covers an area of over 1,700 mu, and currently employs more than 800 people. The company has been active in the petrochemical industry for over a decade, successfully developing industrial chains across the upstream and downstream sectors of this industry. It has also expanded its activities into the fields of fine chemicals and new energy materials. Its main products include needle coke, polyphenylene sulfide, MTBE, isooctane, and sulfuric acid. Since its establishment, the company has generated total operating revenues of over 150 billion yuan, paid a total of 4.8 billion yuan in taxes, and had total assets amounting to 4.6 billion yuan. It has gradually grown into a key enterprise in the local industrial economy, a driving force in the chemical industry, and a vital source of fiscal revenue.