Yankuang Energy (01171) plans to invest in Rongxin Chemical's 800,000 tons/year olefin project

Zhitongcaijing · 10/25 10:57

According to the Zhitong Finance App, Yankuang Energy (01171) announced that the company plans to invest in Inner Mongolia Rongxin Chemical Co., Ltd. (“Rongxin Chemical”) to produce 800,000 tons of olefins per year.

This project uses methanol as a raw material to produce polymer-grade ethylene and propylene using MTO technology, then polymerize to produce high-density polyethylene and polypropylene, and mix products such as C4, C5+, and propane as by-products.

The project mainly constructs 800,000 tons/year methanol-to-olefin plant, 400,000 tons/year polyethylene plant, 400,000 tons/year polypropylene plant, 15,000 tons/year 1-butene plant, 50,000 tons/year steam cracking plant, and supporting storage, transportation, public works, and auxiliary production facilities. The main products are 400,000 tons/year of high-density polyethylene and 400,000 tons/year of polypropylene (collectively known as the “800,000 ton olefin project”).

The planned investment amount for the project is RMB 9.574 billion. The construction capital is raised in the form of a combination of own funds and bank loans. The payback period (including 36 months of construction) is 9.68 years.

This project has been approved by the state-owned assets supervisory authority, and obtained approval from the local government, as well as energy saving assessments, environmental impact assessments, and safety pre-assessments.

High-end chemicals are one of the company's main businesses. Rongxin Chemical is an important coal chemical industrial park located at the company's base in Shaanxi and Mongolia. It currently has an annual production capacity of 2.2 million tons of methanol, ethylene glycol and other by-products. The company relies on Rongxin Chemical's existing industrial base to develop a high-end polyolefin industry chain, build a demonstration base for new coal-based chemical materials, improve the company's development layout, enhance product added value and market competitiveness, and lay a good foundation for the company's future development.