Regarding Jutai Group’s project in Zhungeer Banner, Ordos

We can’t pay salaries anymore; don’t go there. I just went there last month

Midland, Michigan, United States – On September 11, 2012, Jutai Energy (Jungar) Co., Ltd., a subsidiary of Jutai Energy Group, signed a technology licensing agreement for its 350,000 tons per year polypropylene production facility as part of its methanol-to-olefins project, with United Carbon Chemicals and Plastics Technology Co., Ltd., a wholly owned subsidiary of Dow Chemical Company (“Dow”). Under this agreement, Jutai Energy will acquire Dow’s UNIPOL? polypropylene process technology for use in producing polypropylene homopolymers, random copolymers, and impact copolymers. Since the introduction of the UNIPOL polypropylene technology to China in 2006, Jutai Energy has become the 11th company to utilize this technology. Due to China’s abundant coal reserves, the production of polypropylene via methanol-to-olefins is gradually becoming more widespread. According to a report by CMAI, a company in the U.S. chemical industry, driven by rapid economic growth and the desire to reduce reliance on imported raw materials, demand in China’s polypropylene market is growing at a rate of 7% per year, which is much higher than the global average of 5.2% per year. Resins produced using Dow’s UNIPOL polypropylene technology account for 17% of the global polypropylene production volume. Polypropylene is a versatile resin widely used in packaging, durable goods, automotive parts, non-woven fabrics, fibers, and everyday items. Mr. Cui Lianguo, chairman of Jutai Group, said, “We chose Dow’s UNIPOL polypropylene technology because it offers comprehensive product capabilities at low investment costs and operating expenses.” At the same time, Dow will provide long-term technical support and continuous technological innovation. Producing polypropylene products using UNIPOL technology will expand our existing business. UNIPOL’s excellent product capabilities in copolymers also give us the opportunity to reduce the import of copolymer products. ” The facility is scheduled to be built and put into operation in 2015 in Zhungeer Banner, Ordos City, Inner Mongolia. “UNIPOL polypropylene technology will give Jiu Tai a competitive edge in China’s growing polypropylene market,” said Mr. Xi-Kai Kleckler, president of United Carbide Chemicals and Plastics Technologies Ltd. “Our UNIPOL technology has shown strong growth momentum in China and across Asia, where the growth rate is higher than the global average.” Dow is specifically focused on helping Chinese polypropylene producers meet the increasing demand for domestically produced polypropylene. Dow’s UNIPOL technology also enables plants to produce polypropylene products using the simplest techniques. To date, 47 UNIPOL polypropylene plants worldwide, transferred from Dow’s Functional Plastics Technology Transfer and Catalysts business unit, are in operation. The UNIPOL polypropylene process is a fully gas-phase process capable of producing a wide range of polypropylene products. It features a simple design, stable and uniform product quality, high energy efficiency, and does not require solvent treatment, separation, or recovery facilities. The fluidized bed reactor, combined with efficient CONSISTA? catalysts and SHAC? catalyst systems, provides flexibility for the production of homopolymers, random copolymers, and impact-resistant copolymers.

To date, the project has secured contracts for UOP’s MTO technology in the United States, KBR’s pre-propane separation technology, and Dow Chemical’s UNIPOL polypropylene technology. Source: http://www.mhg114.com/forum.php?mod=viewthread&tid=994&extra=page%3D13&page=2