Yuhuang Chemical’s methanol project in the United States receives a $400 million loan from Bank of China

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Wang Shengwei, president of Shandong Yuhuang Chemical Group (hereinafter referred to as “Yuhuang Chemical”), revealed at the ongoing “Shandong **” event that the loan for Yuhuang Chemical’s investment project in the United States has been approved by the head office of Bank of China. He said that the Bank of China has approved a $400 million loan for him, and loan applications from other banks are also about to be approved; the funding required for this project has been largely secured. 　　Last September, Shandong-based private enterprise Yuhuang Chemical laid the foundation for a methanol production project using natural gas in Louisiana, United States, with an investment of $1.5 billion. The project covers an area of about 1,300 acres; $300 million of this amount is allocated to infrastructure, while the costs related to oxygen and nitrogen will be covered by local American companies. The remaining $1.2 billion will be invested by Yuhuang Chemical. The entire project is planned to be built in three phases; the first phase is expected to come online by the end of 2017, with an annual methanol production capacity of 1.8 million tons, while the capacity in the second phase is set to double. By then, Yuhuang Chemical will become one of the world’s major methanol producers, and over 70% of the methanol produced at Yuhuang’s factory in the United States will be exported to China by sea.