With a total investment of 3.901 billion yuan, Nanjing Chengzhi will produce 60,000 tons per year of n-propanol and 200,000 tons per year of methyl derivatives

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On the evening of April 15, Chengzhi Co., Ltd. announced that it plans to expand its chemical new materials industry chain around its core business. Through Nanjing Chengzhi New Materials Co., Ltd., a wholly-owned subsidiary of Nanjing Chengzhi Clean Energy Co., Ltd.—which in turn is a wholly-owned subsidiary of Chengzhi Co., Ltd.—the company will invest in and construct projects in the New Materials Science and Technology Park in Nanjing’s Jiangbei New Area. These projects include an extension of the ethylene value chain (producing 60,000 tons per year of n-propanol and 200,000 tons per year of methyl methacrylate (MMA)), as well as a project for producing high-end optical new materials (100,000 tons per year of polymethyl methacrylate (PMMA)). The total investment for these projects is estimated at approximately 3.901 billion yuan. The projected construction period for this project is 2.5 years; currently, it is in the pre-construction approval phase. The announcement states that the project aims to promote the diversification of the company’s products, extend the value chain of its existing ethylene-based products, enhance profitability, facilitate industrial upgrading, and strengthen the company’s core competitive advantages in the industry. At the same time, the construction of this project is in line with **industry policies; it can take advantage of the excellent resource advantages and favorable industrial ecosystem of the Nanjing Jiangbei New Materials Science and Technology Park in Jiangsu Province, thereby laying a solid foundation for the company’s sustainable and stable development. The project utilizes domestically produced ethylene and syngas as raw materials to build a propionaldehyde plant, which will further produce n-propanol, MMA, and PMMA. Upon commissioning, the project will help alleviate some of the pressure on Nanjing Chengzhi regarding the external sale of ethylene, reduce the price and supply risks associated with procuring propionaldehyde and MMA from outside sources, and hedge against price fluctuations of bulk raw materials such as ethylene and syngas. As a result, it will enhance profitability throughout the entire operational cycle and enable the plant to operate at high capacity. Additionally, the market cycles of n-propanol, MMA, and PMMA are not synchronized; therefore, this product portfolio helps to reduce overall profit fluctuations and effectively enhances the project’s risk resistance. At the same time, an integrated supply chain structure reduces intermediate trading steps, lowers logistics, warehousing, and funding costs, enhances the resilience of the supply chain, facilitates entry into high-end markets, and strengthens bargaining power against downstream customers. Basic information about the project
Project name: Implementation of the Ethylene Value Chain Extension and High-End Optical New Materials Project
Location: No. 208, Zhaoqiaohe Road, Changlu Subdistrict, Jiangbei New Area, Nanjing City

Construction content and scale: The scope of this project includes the construction of a combined plant for producing 200,000 tons/year of n-propanal and 60,000 tons/year of n-propanol; a 200,000-ton/year formaldehyde plant; a 200,000-ton/year MMA plant; and a 100,000-ton/year PMMA plant. Additionally, it involves storage and transportation facilities (including off-site piping, tank farms, and loading/unloading systems), flares, utility facilities such as water supply and drainage systems, packaging areas and automated warehouses, a central control room, an analytical building, and other auxiliary facilities. Investment amount: The total estimated investment for this project is 3.901 billion yuan (the exact amount shall be subject to the approval of the relevant authorities). Source of funds: Own funds and self-raised funds. Project progress: The construction period for this project is estimated to be 2.5 years, and it is currently in the preliminary approval stage.