2005/4/11 Foster Wheeler                 内蒙古計画

Foster Wheeler/Huanqiu JV Awarded Coal-to-Liquids Study Contract in China

Foster Wheeler Ltd. announced today that its UK subsidiary, Foster Wheeler Energy Limited, in a joint venture with China Huanqiu Contracting & Engineering Corp., has been awarded a feasibility study Stage I contract by Sasol Synfuels International (Proprietary) Limited (Sasol) and its Chinese partners, China Shenhua Coal Liquefaction Corporation Ltd. and Ningxia 寧夏Luneng Energy and High Chemistry Investment Group Co., Ltd. (jointly called "the Combined Chinese Working Team").

The Foster Wheeler contract value was not disclosed. The project will be included in the company's first-quarter 2005 bookings.

The contract is related to two
80,000 barrels per day coal-to-liquids (CTL) facilities to be located at Ningxia Autonomous Region and Shaanxi Province, respectively, both in the coal-rich western part of the People's Republic of China.

"Foster Wheeler is delighted to be awarded this contract by Sasol and the CCWT," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited. "This first use of Sasol's CTL technology outside South Africa builds on the relationship developed over the last eight years between Foster Wheeler and Sasol, optimizing and engineering the application of Sasol's gas-to-liquids (GTL) technology in the global marketplace, and on our long track record of delivering successful projects in China.

"Coal-to-liquids is a key part of the Chinese government's energy strategy, and we are pleased to be involved at the early stages of its implementation and to be involved with other companies so well-placed to ensure its rapid and commercial development," continued Mr. Davies.

Coal-to-liquids comprises an integrated process for the conversion of coal into selected fuel products such as diesel, naphtha and liquefied petroleum gas by using a combination of three principal processes, i.e., gasification of coal to synthesis gas, conversion of gas-to-liquids and hydrocracking the converted products into fuel products. The three processes will involve separate technologies, central to which is Sasol's low-temperature Fischer-Tropsch technology for the conversion of synthesis gas to liquid fuels.

The Foster Wheeler/Huanqiu joint venture will evaluate the available technologies for the projects and complete feasibility study Stage I work to integrate these with the associated utilities and infrastructure systems in order to maximize the value of the project to its shareholders. Huanqiu will provide gasification experience together with the essential local technical, commercial and legislative information to ensure the study conclusions are robust.

The study is scheduled for completion by the end of the year.

Platts 2005/4/20

China may become net methanol exporter in several years: Tecnon

China could become a net methanol exporter in a few years, unless the methanol price drops below $140-150/mt, said Russell Phillips, consultant at Tecnon OrbiChem, at the opening of the first International Methanol Conference in China, Wednesday. The two-day conference in Shanghai, is organized by the International Methanol Producers and Consumers Association in cooperation with Tecnon and local chemical information service provider Chemease.

Methanol imports in China have slipped from 1.80-mil mt in 2002 to 1.40-mil mt in 2003 and to 1.36-mil mt in 2004. The trend is likely to continue as Chinese methanol producers are expanding their plants' capacities over the coming years. However, as Chinese traditional methanol producers use gas retrieved from coal-gas as feedstock, they need a minimum methanol price of around $140-150/mt to break even. As of last week, Chinese methanol spot prices were steady at around $260/mt CFR, thus still largely profitable for producers.

2005/5/13 Sinopec

Sinopec Chemical Sales Branch Company Set Up in Beijing

On 10 May 2005, China Petroleum & Chemical Corporation (Sinopec) had its Chemical Sales Branch Company (Chemical Sales Branch) officially set up in Beijing.

Zhang Jianhua, Senior Vice President for Sinopec, presided over the conference in celebration of the incorporation of the Chemical Sales Branch, and read out the written documents regarding the incorporation of the Chemical Sales Branch Company and the establishment of its three regional branches respectively in Beijing, Shanghai and Guangzhou. Chen Tonghai, GM for China Petrochemical Corporation (Sinopec Group) and Chairman for Sinopec, Wang Jiming, Vice Chairman for Sinopec, jointly unveiled the plaque for the Chemical Sales Branch. Chen Tonghai, Wang Jiming and Wang Tianpu, President for Sinopec later conferred the plaques to the three regional branches respectively.

Over more than past 2 decades, Sinopec has embraced quick business expansions and also undergone multiple reforms, and has now turned out China
s largest manufacturer and seller of oil products, and chemical products. In terms of oil refining capabilities and ethylene producing capabilities, Sinopec has been ranked in the 4th place and the 6th place respectively among other players in the world. Seen from the perspectives of oil refining and sale of finished oil products, Sinopec has already built up a oil products marketing network comprising oil refineries, pipelines, oil depots, and petro stations. Besides, Sinopec is now obtaining even stronger abilities in dominating the domestic market of finished oil products. Seeing from the perspectives of production and sale of chemical products, Sinopecs ethylene production capacity has accounted for 4.25 million tons/year in 2004, constituting more than 70% of the countrys total in the same year. As the Yangzhou-based BASF project and Secco-based ethylene project were put into production already, and with the launch of new ethylene projects and also expansion of certain existing ethylene projects, Sinopecs chemical products are going to expand an increasingly expanding share in the market.

Due to many reasons (in historical and other terms) however, Sinopec has always had its chemical products
distributed in a separated way, and failed to lick into shape a one-fits-alldistribution network, set up a uniform Sinopec Brand, and establish its marketing edges by means of its established competitive edges in terms of product technology. As a consequence, Sinopec has been impeded from readjusting its product mix, developing new products, exploring the market into depth, distributing its resources, managing its customer base, constructing its distribution network, planning out and optimizing its operation strategy and marketing strategy, bringing into play its overall advantages established in the chemicals segment and gaining even stronger competitive forces in the market; in the meanwhile, a vast number of Sinopecs customers have also suffered much inconvenience in purchasing products turned out by Sinopec . In recent years, especially after China became a member of WTO and with the quickened pace of economic integration worldwide, the market scenario has undergone great changes; and the competitions among players in the market of petroleum and chemical products have grown fiercer and fiercer day by day. In an aim to stand out in the market that features increasingly intense competitions, Sinopec has adhered to its long-term strategy for overall business expansion, and also quickened up its pace in reforming its mechanism for marketing of petroleum and chemical products; besides, Sinopec has set up a Chemical Sales Branch Company, plus three regional branch companies in Beijing, Shanghai and Guangzhou respectively, in order to strike up and consummate a distribution network, which makes a fusion of the direct selling mode and the distribution mode (the direct selling mode plays a leading role). This move is of great significance for Sinopec to have its industrial chain integrated, give prominence to its core business, bring into full play its holistic advantages established by means of its integrative business operation, enhance its overall competitive forces in an all-round way, strengthen its abilities in dominating the market of petroleum and chemical products, and also maximize its benefits as a whole.

Wang Tianpu pointed out in his speech delivered in the plaque-unveiling ceremony that,
after this Chemical Sales Branch Company was established, Sinopec shall, under the precondition of retaining its current market share, distribution system and customer base, and also realizing a smooth transition from the old distribution system to the new distribution network, and pursuant to the requirements in the new operating system and mechanism, unify its marketing strategies, market exploration practices, logistics optimization practices, resources deployment practices, selling behaviors and brand awareness promotion strategies; accomplish the planning and deployment of its marketing network as quickly as possible; standardize its customer relations management practices; put its distribution channels in due order; consummate various intramural management systems and measures of its own; do its utmost to start trial operation in July, and put the ERP system into service, and initialize the fresh mode of business operation in a comprehensive way, by the end of the year. He hopes that those oil refining and chemical production enterprises affiliated to Sinopec shall take into account the holistic business needs of Sinopec , coordinate closely with this Chemical Sales Branch Company, follow the demands in the market, organize their production work as planned, have such links as production, distribution and research associated smoothly on their initiatives, and concentrate their efforts on performing such tasks as improvement of product quality, expansion of product variety, substitution of imports by use of domestically-produced counterparts, and reduction of operating costs, as well. During the reform- reform-incurred transition period, it is necessary to stabilize the team of marketing specialists, cling to the marketing strategy featuring follow the market demands closely, sell out all products turned out, and realize the optimal selling prices in the current period, and do a brilliant job in marketing work, for the nonce.

In the end, Wang Tianpu accentuated that after the Chemical Sales Branch Company was set up, Sinopec would adhere to its business motto, characterized by
effective competition and constant opening-upas ever, honor its guiding principles of standardized business practices, integrity and solid creditworthiness, stick to its creed get adapted to the market demands and serve customers with a considerate attitude, intensify its communication with a vast number of its customers further still, improve mutual understanding of and cooperation with its business partners, boost the common developments of both the buyer and the seller in a balanced manner, and create a win-winsituation, as well as contribute to the sustainable development of Chinas petroleum and chemical industry.

日本経済新聞 2005/6/24

ユノカル買収 中国参戦 中国海洋石油が名乗り
 シェブロンと対決 米政府・議会に懸念の声も


中国海洋石油 資源確保を最優先


日本経済新聞 2005/8/3





2005/6/29 Vopak

Vopak starts development of sixth terminal in China 江蘇省張家港

* Vopak starts development and construction of new chemicals terminal in Zhangzijagang, China
* Vopaks sixth terminal in China and the first fully-owned
* Terminal to be operational in 2008

Koninklijke Vopak N.V. (Royal Vopak) announces that it has reached agreement with the local authorities of Zhangzijagang in Jiangsu Province, China, on the long-term lease of around 48 hectares of land to build a state-of-the-art terminal. In this bonded area in the industrial park of the Free Trade Zone in Zhangzijagang, Vopak will start development and construction of a new chemicals terminal.

Zhangzijagang is situated on the southern banks of the Yangtze River, about 140 kilometres northwest of Shanghai, in the Yangtze River Delta area. This area accounts for approximately 20% of Chinas Gross National Product and 25% of the countrys total industrial output.

The terminal will serve partly as an industrial terminal supporting the manufacturing activities of the multinational chemical companies in the industrial park where it will be built. Furthermore, the excellent location of Zhangzijagang will enable the terminal to offer break bulk services of chemicals in the Yangtze River Delta area.

In the first phase, the terminal will have a storage capacity of around 200,000 cbm and will be taken into operation in 2008. At present, the design and scope of the terminal are being finalised in order to start the selection process of the engineering/construction company.

Vopak has been active in China since the beginning of the 1990s and has since established a network of five terminals, in different joint ventures, along the Chinese coastline. The new terminal in Zhangzijagang will be the first Vopak terminal in China that is fully-owned by the company.

Royal Vopak is a global independent tank terminal operator specialising in the storage and handling of liquid and gaseous chemical and oil products. Upon request, Vopak can provide complementary logistics services for customers at its terminals. Vopak operates 72 terminals with a storage capacity of more than 20 million cbm in 29 countries. The terminals are strategically located for users and the major shipping routes. The majority of its customers are companies operating in the chemical and oil industries, for which Vopak stores a large variety of products destined for a wide range of industries.

* 日本ヴォパックは、世界最大の液体貨物ロジスティクス カンパニーであるRoyal Vopak(オランダ・ロッテルダム)、日本通運株式会社、長瀬産業株式会社のジョイントベンチャーです。

Shandong Business Net 2005/6/30


 30余社の民営石油企業が加盟する「長聯石油株式会社」(英語名:Great United Petroleum Holding Co. LTD、略称:長聯石油、GUPC)が6月29日北京で設立され、これはこれまでのところで、中国最大の民営石油連合企業であると見られている。


 同企業の短期間の戦略としては民営石油企業の資源の連合を通じて、石油と天然ガスの探査・採掘、精製・石化、石油貿易、石油の物流、石油の小売と卸売りを一体化させた石油産業のチェーンを逐次形成させ、比較的競争力のある大型石油会社を目指し、石油産業の国際競争と協力に参与し、海外の石油 ・天然ガス資源の獲得などの分野で積極的な役割を果たすことになる。

 背景としての資料:長聯石油株式会社(英語名:Great United Petroleum Holding Co. LTD、略称:長聯石油、GUPC)は数多くの民営石油・天然ガスの企業が共同で設立した、石油の探査・採掘、精製・石化、輸入貿易、石油の卸売り・小売を主な経営内容とする合同経営実体である。現在、30余社の民営石油企業が加盟しており、さらに少なからぬ石油企業が今後これに加盟することになっている。



*当初の社名案は Great Wall United Oil Group Corporation

日本経済新聞 2005/7/13

中国石油事業 外資が攻勢
 米エクソンとサウジアラムコ シノペックと共同 精製・小売り一貫で



Platts 2005/8/2

China Garson defers indefinitely third EPS unit on over-capacity 嘉盛石化

China's Garson Petrochemical has postponed indefinitely the start up of its third expandable polystyrene unit in Jiangyin, pending a sustained recovery in cash margins, a source close to the company said Tuesday.

The delay is the latest in a series of others by Garson, as local EPS producers struggle against over-capacity in the country. Garson has two exiting 60,000 mt/yr lines, which have been operating at 50-60% capacity for nearly eight months, as have many other EPS plants in China. China's booming construction sector had led to a proliferation of new EPS plants coming onstream in the past five years. Nearly all of them are stand-alone plants, dependent on SM imports for feedstock. Until May, Garson had planned to commission the third 60,000 mt/yr line in the second-half of 2006. Its two existing units form a single plant, and the third 60,000 mt/yr line would eventually be an extension of the plant as well.

Asia Chemical Weekly 2004/4/23

China's Jiasheng defers launch of EPS line by 5 months to Aug-Sep

China's Jiangsu Jiasheng Petrochemical Industry (嘉盛石化) has deferred by five months the commissioning of its second expandable polystyrene line in Jiangyin, to August or September, a company source said.

Jiasheng, also known as Garson Petrochemical Industry, plans to start up its third EPS line in May-June next year. All three EPS lines have identical nameplate capacities of 60,000 mt/yr each. They will eventually be linked to form a single plant. Jiasheng's first line was operating at 70% capacity on Monday due to weak negative cash margins. Early Monday, China's styrene monomer and EPS markets were pegged at Yuan 9,000/mt ex-tank and Yuan 8,900/mt ex-work, respectively. This meant that local EPS producers were making losses of about Yuan 900/mt ($108/mt).

Platts 2005/8/26

China's Liaoyang to start PX line in Nov, capacity up to 650kt/yr
   遼陽石油化学( PetroChina group)

China's Liaoyang Petrochemical Co will commission a
new 350,000 mt/yr paraxylene line by October or November this year, a company source said Friday. This would boost its total PX capacity to 650,000 mt/yr.
Plans have also been drawn up to start up another
530,000 mt/yr PTA line this year, although further details were unclear. The company's downstream production capacity at its site in Liaoning遼寧省, northeastern China, include 270,000 mt/yr of purified terephthalic acid, 100,000 mt/yr of monoethylene glycol and 300,000 mt/yr of polyethylene terephthalate. Liaoyang Petrochemical comes under the umbrella of PetroChina and represents the biggest fiber production base in North China.
Given China's preference for reverse integration in the polyester sector, China is one of the region's biggest consumers of PX, PTA and MEG.
However, major expansion plans for PTA and MEG production will change market fundamentals from a shortage to a surplus, possibly as soon as 2006, while PX supply is expected to stay tight.

December 23, 2003 UOP

PetroChina Liaoyang Petrochemical Company to Add Additional Para-xylene Capacity Using UOP Technology

UOP LLC has been selected by PetroChina Liaoyang Petrochemical Company (LIAOHUA) of Liaoyang, Liaoning, China to supply technology, basic engineering services, and equipment for a second para-xylene train for their facility in Liaoyang, Liaoning, China. The new plant is planned to start up in 2006 and produce 350 KMTA of para-xylene.
s project scope includes a new Parex? process unit for para-xylene purification and a new Isomar? process unit for xylene isomerization.
PetroChina Liaoyang Petrochemical Company of Liaoyang, Liaoning, China is a leading producer of polyester products in China. LIAOHUA has been operating a para-xylene production plant based on UOP technology since 1996.
UOP LLC, headquartered in Des Plaines, Ill., USA, is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries.

日本経済新聞 2005/8/29

中国製薬大手に外資出資 対未上場企業で過去最大規模

(Warburg PincusWP)と香港に本社を置く中国系の中信資本(CITICキャピタル)が計45%の株式を取得した。両社は計約2億ドルを投じており、外資による中国企業の未上場株取得としては過去最大級とみられる。

1979年に設立された中国最大級の金融コングロマリットで、商業銀行業務(CITIC Industrial Bank、CITIC Ka Wah Bank)、投資銀行、アセットマネジメント業務(CITIC Capital)、証券ブローカレッジ業務(CITIC Securities)や信託業務(CITIC Trust)等を経営している。同グループは、多国籍企業との間でこれまでに300を超える合弁事業を営んできている。


中信資本 CITIC Capital Markets Holding Limited
北京の中国国際信託投資公司、香港のCITIC Pacific、香港のCITIC International Financial Holding Limited を株主とするCITIC Capital Markets Holding Limitedは、CITICグループの世界水準の金融専門知識や広範なネットワークを活用し、投資銀行、アセットマネジメントや証券ブローカレッジ業務を展開している。CITIC Capitalは、香港、上海、東京に拠点を有している。



Business Day(Thailand)  2004/12/21

Warburg Pincus buys stake in drugmaker

Warburg Pincus, Citic Capital Markets Holdings and a Chinese venture capital company agreed to pay 2.04 billion yuan (US$246 million) for 55 percent of Harbin Pharmaceutical Group Holding to help the drugmaker restructure and cut its ties with failed Southern Securities.

The world's second-biggest buyout fund and Citic Capital will take 22.5 percent stakes, while Heilongjiang Chenergy HiT High-tech Venture Capital will buy 10 percent, according to a statement filed with the Shanghai Stock Exchange. The Harbin city government will remain the largest shareholder with 45 percent.
The drugmaker, also known as Hayao Group, will use the funds to help buy back all shares it doesn't own in Shanghai-listed unit Harbin Pharmaceutical Group. That includes a 60.9 percent stake illegally held by Shenzhen-based Southern Securities, which was taken over by the government in January for illegal and irregular operations, and disorderly management.
It's highly likely that the drugmaker plans to list the entire group overseas, which is why investment banks and buyout firms are interested in buying a stake,said Wang Ping, an analyst at Industrial Securities in Shanghai.
Shares of Harbin Pharmaceutical were suspended from trading today. They rose 1.8 percent to 5.58 yuan on Friday, paring their decline this year to 41 percent. The benchmark Shanghai Composite Index has fallen 15 percent in the same period.
New York-based Warburg Pincus and Citic Capital, a unit of China's biggest investment company, will each invest about $100 million for their stakes, the companies said in a release distributed before a press conference in Beijing. Harbin Pharmaceutical, based in the capital of China's northeastern province of Heilongjiang, sells Chinese and Western medicines and healthcare supplements under the Hayao brand.
This funding provides us with necessary capital to leverage both domestic and international opportunities in this growing market sector,'' Jiang Linkui, general manager of Hayao, said in the release.
The deal is the biggest takeover of a state company in Heilongjiang. The state will remain the company's controlling shareholder and the three investors aren't acting in concert, according to the exchange statement.
The investment will help solve the serious problemof the stake held by Southern Securities, Warburg Pincus managing director Chang Sun said in an interview before the press conference. Hayao will decide later whether to sell shares, Chang said.
Southern Securities' big holding in the listed company has seriously hurt the interests of the shareholders, influenced share liquidity and brought big uncertainty to the company's future business,the company said in its exchange filing. The purpose of the stake purchase is to erase that gravely negative impact.
Southern Securities, the nation's fifth-biggest brokerage, bought shares in Harbin Pharmaceutical using many accounts without declaring its stake, said Meng Qingliang, a fund manager at Haitong Securities in Shanghai.


日本経済新聞 2005/9/8

伊藤忠 中国で総合商社認可 国内外での投資 自由に



1. 払込済み登録資本金が1億米ドル以上、もしくは払込済み登録資本金5,000万米ドル以上
2. 登録資本金のうち、最低3,000万米ドルが中国国内の傘下企業に投資されていること。
3. 既に研究開発センターを設立(当初は2つ以上)

 (1) 輸入権及び中国国内販売権(小売は含まず)
 (2) 親会社製品のアフターサービス、およびアフターサービスに要する補修部品の輸入
 (3) 地域本部の傘下企業に関する財務支援業務の提供
 (4) 物流配送業務
 (5) 中国国内企業に製品の生産・加工を委託し、その製品を国内外で販売する業務

日本経済新聞 2005/9/18

三井物産 中国で3社同時認可、輸出入や販売自由に


September 5, 2005  Sarkaritel.com News and Features-Corporate News

GAIL Ventures Into Coal Gasification In China

GAIL (India) Limited is set to venture into the coal gasification activities in China. The company plans to invest in Coal - to Methanol - to Petrochemical plant in the Shaanxi province.

During his recent visit to China, Shri Proshanto Banerjee, Chairman and Managing Director, GAIL along with the GAIL team has agreed to enter into a Memorandum of Understanding with Shaanxi Huashan Chemical Industry group. As per the MoU, GAIL will conduct a feasibility study for setting up a coal - gasification based petrochemical plant for production of polyolefins and other products in Shaanxi province in China. The Shaanxi province has abundant quantity of coal, which can be availed at competitive prices. During the meeting with the GAIL team, His Excellency Mr. Pan Liansheng, Vice Governor, Shaanxi province has assured all possible help to GAIL for setting up the plant.

The two companies will subsequently consider setting up of a joint venture for implementation of the proposed project and to set up distribution and marketing network in China. Shaanxi Chemical is already operating a fertilizer plant based on old coal gasification technology and is willing to adopt the modern Shell coal gasification technology to upgrade their plant. It may be mentioned that the Shaanxi province is endowed with large deposits of coal as well as oil and gas reserves.

Sinopec, the major Oil and Gas Company of China, is working on the application of Shell technology for coal gasification for production of ammonia, which is eventually used for production of urea. During discussions, Mr. Chen Qi, Director General, Sinopec has agreed to share their experiences with GAIL regarding the construction, operation and commercialisation aspects of coal gasification based projects. Sinopec also agreed to develop a cooperation framework with GAIL for coal gasification projects, apart from gas transmission and distribution business after detailed discussions and identification of projects for implementation jointly.

In China, 12 plants based on Shell Gasification Process are under different phases of construction and will be operations during the year 2006 onwards. The synthesis gas produced from these plants will be used for manufacturing fertilizers, methanol and hydrogen. There are strong similarities between India and China as both have large coal deposits and would need growing quantities of fertilizer and chemicals / petrochemicals for the growing domestic markets.

GAIL is taking initiative to bring modern technology to unlock the potential value of coal acreage suitable for coal gasification in India. The technology helps in reducing manufacturing costs besides replacing existing, older and environment unfriendly facilities.

GAIL will be using domestic coal to produce synthesis gas or syngasby using Shell Coal Gasification Process (SCGP), which will used for the first time in India. SCGP has an inherent capacity of handling high ash content and hence is suitable for Indian coals.

GAIL plans to set up a Rs. 750 crore coal gasification project in Eastern India with coal handling capacity of 2000 tonnes per day to produce 3.4 MMSCMD of syngas. The industries in the eastern India which run on liquid fuel for their feedstock / fuel will save huge costs when they use synthesis gas which can be made available at US$ 3 per mmbtu.

GAILs focus in eastern India is primarily due to the availability of abundant amount of coal in West Bengal, Bihar, Jharkhand and Orissa. The identified locations for setting up the project are Haldia, Durgapur and Talcher. West Bengal Government is also very keen to revive the fertilizer plants and Chief Minister of West Bengal has assured GAIL of full support for setting up plants based on coal gasification technology.

Shell has carried out an initial Screening Study for GAIL, based on data of Indian coal, which has high ash content, and the outcome is encouraging. A Detailed Feasibility Report (DFR) by Uhde India Ltd. in collaboration with their parent company M/s Uhde Gmbh, Germany is expected to be ready by October 2005. The DFR will look into various possible end uses of the synthesis gas, availability, proximity of source and quality of coal and will facilitate a commercial decision for investment in coal gasification project.

GAIL is also in talks with Coal India Limited for jointly evaluating various Overground Coal Gasification Technologies/clean coal technologies available in the industry and for examining the suitability of these technologies for Indian coal. GAIL and CIL will evaluate the possibility of utilizing the product of Overground Coal Gasification for use in various industries as fertilizer, chemicals including but not limited to the production of petrochemicals.

日本経済新聞 2005/10/7

中国国有石油2社 エクアドル油田も買収 調達安定化を狙う



時期 中国石油会社 買収、出資先
4月 CNOOC 加MEGエナジーの株式取得
8月 CNOOC 米ユノカル買収を断念
CNPC 加ペトロカザフスタン買収を決定
9月 CNPCなど 加社からエクアドル油田権益買収決定
検討中 CNOOC 豪ウッドサイド買収を検討
シノペック 加ハスキー・エナジー買収目指す


Platts 2005/10/11

China's Donghao commissions SM plant, commercial sales from H2 Oct

China's Donghao Chemical 東昊 is in the process of commissioning its styrene monomer plant in Changzhou(常州), and hopes to start commercial sales in late October, a source close to the firm said Tuesday. Donghao fed the 150,000 mt/yr plant with benzene over the weekend, followed by ethylene on Tuesday. The plant was expected to start producing on-spec styrene by Oct 15.
's plant is not backward-integrated, so the firm has to buy all its benzene and ethylene feedstocks. It plans to source all its feed from the spot market.
When fully on line, the plant has the potential to tip the supply balance, sources said. Last year, China's local styrene prices were depressed for several months after Shanghai Secco Petrochemicals started up its 500,000 mt/yr plant. But unlike Secco, which uses more than half its own styrene output captively to produce polystyrene, Donghao plans to sell all its styrene in the merchant market. China's domestic market was pegged at Yuan 10,800-10,900/mt ex-tank Jiangyin on Tuesday.

2005/10/13 日本経済新聞夕刊

サハリン3の一部権益取得 シノペック


July 04, 2005 Kommersant

Rosneft Opens Sakhalin to the Chinese
Sinopec to take part is development of Venin block
International Cooperation

Rosneft signed an agreement with the Chinese Sinopec petrochemical company on Friday on the joint development of the Venin block oil and gas field in the Sakhalin 3 project. Gazprom had also declared its interest in working with Rosneft but had made no concrete proposals. A partnership with Sinopec is likely to mean that Rosneft will keep a share in the Venin block under any circumstances.
On Friday, in the course of Russian-Chinese negotiations, Roneft signed a framework agreement on collaboration with CNPC, the Chinese national oil and gas company, and a protocol on the foundation of a joint venture for geological exploration and study of the Venin block field of the Sakhalin 3 project with the Chinese oil and gas company Sinopec.

The oil resources in the Venin block are preliminarily estimated at 114 million metric tons ad gas at 315 billion cubic meters. Rosneft received a license for geological study of the block in April 2003. It is assumed that the operator of the project will be a specially founded OOO Veninneft. There are three other blocks besides Venin in the Sakhalin 3 shelf project. They are the Eastern Odopinsky, Ayashsky and Southern Kirinsky, licenses for which are held in an indivisible fund.

The agreement between Rosneft and Sinopec means that the Chinese company will receive a share in OOO Veninneft. Its size has nor yet been revealed. Kommersant has information that Sinopec will receive a 40-50 percent share in the project operator. Rosneft president Sergey Bogdanchikov announced on Friday that Sinopec will finance all geological exploration work ad no less than half the funds necessary for the development of the block. It is thus committing itself to more than half of all the financing of the project.

On June 24, Alexey Miller, chairman of the board of the Gazprom monopoly, stated that that company was preparing to make an offer for the purchase of a share in all the Sakhalin projects from Rosneft. Besides the Venin block, Rosneft owns 20 percent of the Sakhalin 1 project (operated by the American ExxonMobil, which owns 30 percent. The Japanese SODECO also owns 30 percent of it and the Indian ONGC owns 20 percent). Rosneft owns 51 percent of Sakhalin 4, the project is developing the Western Shmidtovsky lot, along with British Petroleum. Rosneft and BP are sharing in the same proportions the Sakhalin 5 project at the Eastern Shmidtovsky and Kaigansko-Vasyukansky lots. On Friday, a Gazprom representative told Kommersant that no concrete offers had been made to Rosneft. The fact that the oil company found an investor for the development means that it will most likely retain a share in the project in any case.

At the end of this year or beginning of 2006, the Ministry of Natural resources plans to auction off the three remaining blocks in Sakhalin 3. Gazprom plans to take part in those auctions with LUKOIL. Representatives of the companies have not said to what extent the infrastructure of the Sakhalin 3 blocks will be interconnected, but some cooperation between the participants in the project will obviously be necessary.

日本経済新聞 2005/10/25

丸紅、山東省と包括提携 まず日本に紙の販社設立


山東晨鳴紙業集団股フェン有限公司 Shandong Chenming Paper Holdings Limited


Platts 2005/10/24

PetroChina's Lanzhou revises upward planned No 2 cracker capacity

China's Lanzhou Petrochemical has revised upward the planned capacity of its No 2 ethylene plant, currently under construction, to 450,000 mt/yr from the original plan of 360,000 mt/yr, a source at the company said Monday. The revision would allow Lanzhou, a subsidiary of PetroChina, to reap greater economies of scale from a bigger cracker.
Construction of the Yuan 6-bil ($742-mil) naphtha cracker is scheduled to be completed by the end of 2006, the source said. The project would lift Lanzhou's total ethylene capacity to 690,000 mt/yr. Lanzhou currently has a naphtha cracker with an ethylene capacity of 240,000 mt/yr.
PetroChina aims to market Lanzhou's output to consumers in Chongqing, Sichuan Province, in southwestern China. Lanzhou is located in the northwestern province of Gansu.
Lanzhou's dowmstream capacities include the following units, according to Japanese government estimates: 195,000 mt/yr combined LDPE and LLDPE; 65,000 mt/yr styrene monomer; and 124,000 mt/yr PP (supported by C3 from steam and catalytic crackers).

China Chemical Reporter 2005/10/24

Yunan Launches DME Project   雲南省

The dimethyl ether (DME) project will be launched in Yunnan province, southern China recently. With the total investment of RMB970 million and the production capacity of 150 000 tons/a, this project is implemented by Yunan Jiehua Group Chem Co., Ltd and will be completed in the end of 2007. When the project put into stream, it is estimated that 1.1 million poor coal will be consumed per year, and the additional value of poor coal will be quintupled with annual sales revenue of RMB447 million.

With local lignite as raw material, this project adopts gasification technology to provide intermediate material gas and produces DME and methanol products finally.

Nowadays, the key development goal of DME is being the substitute for civil clean fuel and diesel oil. DME with the characteristics similar to liquefied petroleum gas does no harm to human body and ozonosphere after burning so that can be used as civil clean fuel. Because fuel coals can cause pollution to the environment, and the huge investment will be put into for the pipeline of fuel natural gas and coal gas furnace gas, furthermore the limited domestic supply for liquefied petroleum gas, so DME is no doubt the best choice. As professionals estimate, the domestic demand for DME will be 5 million to 10 million tons in the next five years.

日本経済新聞 2005/11/1

中国石油 3子会社 上場廃止 全株、890億円で買取り


Platts 2005/11/14                    PetroChina case

Sinopec to privatize Zhenhai Refining & Chemical Co

Chinese oil company Sinopec Corp plans to privatize Sinopec Zhenhai Refining & Chemical Company Limited 鎮海煉油化工in a deal worth HK$7.672-bil ($989-mil), the company said Monday. The "merger by absorption" is to be effected by a wholly-owned subsidiary of Sinopec, Ningbo Yonglian.
Sinopec already owns 1.800-bil or 71.32% of ZRCC's 2.524-bil shares. Ningbo Yonglian is to be set up to to pay a cancellation price of HK$10.60/share in cash to the holders of ZRCC's 724-mil publicly-traded H shares. The completion of the merger is subject to regulatory and ZRCC shareholder approvals.
"This transaction would contribute to the continued development of Sinopec Corp," the company, which is listed in both New York and Hong Kong, said in a statement. "It also demonstrates efforts of Sinopec Corp management to deliver their promises at IPO which include restructuring its assets in order to strengthen competence of its core business. From a long-term perspective, the transaction will have a positive impact on Sinopec Corp's profitability as well as shareholder value."
Sinopec said the proposed merger would reinforce the business value chain of ZRCC through the vertical integration of ZRCC's refining assets with Sinopec's upstream refining operations, as well as offering synergy effects in capital allocation, investment, branding, resources, marketing, and distribution channels. It would also eliminate related party transactions and intra-group competition, and would allow for the consolidation and simplification of management structure. "Moreover Sinopec Corp believes that the merger should have a positive impact on Sinopec Corp's profitability as well as shareholder value," the company added.
The cancellation price was "reasonable" for both Sinopec and ZRCC's shareholders, the Chinese major said. The price represents a premium of 12.17% over ZRCC's closing price of HK$9.45/share on Nov 2, 2005, and is also 22.93% and 29.91% higher than the company's average closing price of HK$8.62/share over the last month and HK$8.16/share over the last 12 months respectively.
ZRCC is a Sinopec holding subsidiary which listed on the Hong Kong Stock Exchange in December 1994 and is one of China's largest processing bases for crude, imported crude and sour crude and the largest export base for oil products. The company has a crude oil processing capacity of 18.5-mil mt/yr.
Downstream Zhenhai also has a 650,000 mt/yr paraxylene plant and a 200,000 mt/yr of polypropylene unit. Zhenhai currently has plans to build a naphtha cracker with an ethylene capacity of 800,000 mt/yr by 2010, according to industry sources.
Based on 2004 financial data, ZRCC's net profit was RMB 2.61-bil ($323-mil) or RMB 1.04/share on turnover of RMB 41.9-bil. At the end of 2004, the company's total and net assets were RMB 15.49-bil and RMB 11.41-bil respectively.

2005/10/31 Qenos

Sale of Qenos to ChemChina

Qenos is pleased to announce that international chemical group China National Chemical Corporation (ChemChina) has signed a Heads of Agreement with the companys shareholders, Orica and ExxonMobil, to purchase the Qenos business. The agreement is subject to required regulatory approvals in Australia and China, with settlement targeted to take place in early 2006.

Commenting on the pending sale, Mr Ross McCann, Chief Executive Officer of Qenos, said:

ChemChina is a global chemical industry player and Qenos is a strategic acquisition that complements ChemChinas global growth strategy and portfolio of chemical businesses. The acquisition provides a strong Australian platform for further business growth.

Qenos is an attractive acquisition for ChemChina given its highly skilled workforce, technical expertise, strong customer base, logistics infrastructure and operational systems.

Mr McCann added:
The Qenos strategy remains the supply of polyethylene and services to meet the needs of the Australian polyethylene market and Qenos will continue to be run by local management. Qenos offers ChemChina an experienced management team and world-class systems in the areas of operational and safety, health and environmental standards.

ChemChina is a large government owned enterprise in China with a portfolio of chemical businesses. With sales of approximately A$9.6billion and employing over 100,000 people, ChemChina is one of the largest chemical companies in China.

Qenos was formed in 1999 when Orica and ExxonMobil joined their petrochemical operations in Australia to form a stronger, more globally competitive business. Qenos is Australias sole polyethylene manufacturer focused on supplying the local market and has approximately 850 direct employees and A$800M annual revenue. With manufacturing sites in Victoria and New South Wales, Qenos adds value to Australian oil and gas reserves, through conversion into high value petrochemicals and plastics that are used as raw materials by hundreds of companies in the downstream Australian plastics conversion industry. The final products are used in a myriad of applications, including the key packaging, agriculture, automotive, water management, mining and waste management industries.

ChemChinaは昨年5月に国営のChina National Blue Star (Group) (藍星グループ)と China Haohua Chemical Industrial (Group) (昊華化工)が統合したもの。

99年10月 ケノス社(Qenos)設立(エクソンモービル53%、オリカ47%)
Orica 旧ICIオーストラリア)と
 エクソンモービル 旧ケムコア社(
Kemcor エクソンケミカルとモービルケミカルの折半出資)が、

At Qenos we use Australian oil and gas feedstocks from Bass Strait and the Moomba Basin. We employ 900 people. Our plants in Sydney and Melbourne produce olefins and a full range of polyethylene products (HDPE, LDPE and LLDPE). We also supply a diverse range of specialty polymers. That makes Qenos a vital link in the Australian manufacturing chain, supplying industries that employ hundreds of thousands of people.

Platts 2005/11/25

Shanghai Gaoqiao becomes China's biggest PET maker

China's Sinopec Shanghai Gaoqiao started up a new 80,000 mt/yr polyester plant on Nov 20, according to a company announcement posted Friday (Nov 25).
The plant consists of three lines. With the startup of the new unit, SSGPC's total polyester capacity has reached 200,000mt/yr, making the company China's largest polyester producer, overtaking the 185,000 mt/yr CNOOC and Shell Petrochemical capacity to be brought on stream in December, the statement said.
The operation rate of SSGPC is likely to lag behind its capacity expansion, since the supply polyesters feedstock has been tight for the last two years and feedstock prices have climbed steeply recently, said an SSGPC official. No substantial increase in actual polyester production will occur unless a significant amount of feedstock supply is guaranteed, he added.

日本経済新聞 2005/11/26

中国、工場爆発相次ぐ 重慶でも河川汚染 増産急ぎ安全対策後手に


非常事態亘言ロシア発動も 松花江汚染広がり警戒


Platts 2005/11/30

China's Shenyang Chemical to build cracker for 120kt/yr ethylene   瀋陽化工

China's Shenyang Chemical Group held on Nov 28 a ground-breaking ceremony for construction by 2007 of a 500,000 mt/yr catalytic thermal cracker in China's northeast province of Liaoning 遼寧省, the company said Wednesday. This unit is the first to use exclusively domestic Chinese technology for ethylene production, using a Catalytic Pyrolysis Process (CPP). The Yuan 3.6-bil ($445-mil) investment will use 500,000 mt/yr of residual oil for the production of about 120,000 mt/yr of ethylene, according to an official from BlueStar, the parent company of Shenyang Chemical Group. The ethylene was destined to be used as feedstock for the production of polyvinyl chloride.
Shenyang Chemical is the largest producer of PVC paste resin in China by market share.
The project was approved by China's National Development and Reform Commission in August 2004, when Shenyang brought on stream a 40,000 mt/yr epoxy propane and polyethers complex.

新華社 2005/12/3

China begins methane resources exploitation

A 100-million-cubic-meter coalbed methane
炭層メタンexploitation project has been completed in north China's Shanxi Province, marking the country has finally began to make use of the gas on an unprecedented scale.
Located in the southern part of the Qinshui Basin, Jincheng
晋城 City of Shanxi Province, the gas exploitation project is the largest of its kind in China, with a verified gas deposit of 40.2 billion cubic meters and an annual production of 100 million cubicmeters.

At a price of 1.1 yuan (0.136 US dollars) per cubic meter, the project's yearly output is expected to be worth 110 million yuan (13.6 million US dollars), said Sun Maoyuan, general manager of China United Coalbed Methane Corp. Ltd, the investor of the project.
The company has pumped 360 million yuan (44.4 million US dollars) into the project.
The first phase is capable of churnning out 80,000 cubic meters natural gas daily, which will be supplied to gas companies and power grids, said Sun.

Shanxi Province boasts an abundance of coal resources. It is also China's largest reserve base of coalbed methane. The estimated methane deposit is about one trillion cubic meters, or one third of the country's total.
Experts said the methane could be burned for 6,682 years by one million households, or be turned into 22 trillion kwh's electricity.
"Coalbed methane is a valuable asset of Shanxi, which should not be lying there underground uselessly," said Yu Youjun, the acting governor of the province.

However, the methane, or more commonly known as natural gas, could also be extremely hazardous.
In 2004, China's coal mines produced 14 billion cubic meters of gas, a number experts say that it will increase to 17 billion cubic meters in 2020.
Notably, 80 percent of the casualties in coal mine accidents could be attributed to their deaths to gas explosions, which cause direct loss of 750 million yuan (92.6 million US dollars) a year.
"The proper use of the gas is meaningful in the sense of environmental protection, work safety control, and profit generation," said Yu.
In recent years, the province has been vigorously bringing in foreign capital to tap the gas resources. It has kicked off an exploitation program with two billion yuan (247 million US dollars) in foreign loans.

The Asia Development Bank has vowed to provide over 1 billion US dollars in loans under favorable conditions to assist the province's endeavor in the next 10 years.
Another massive methane exploitation project with an installedcapacity of 720 million cubic meters is also under construction inShouyang County. By 2008, the gas will be sent to Beijing, Shanghai and other major cities through the west-east gas transmission routes, said sources with the provincial government.
China is the third largest coalbed methane reserve country in the world, only next to Russia and Canada. The latest evaluation shows that China has 31.46 trillion cubic meters coalbed methane lying above a 2,000-meter depth, 60 percent of which is suitable for exploitation.
China's methane resources are distributed in 24 provinces, with Shanxi Province and Xinjiang Uygur Autonomous Region accounting for more than half of the country's total reserve.

日本経済新聞 2005/12/7                     クウェート発表  PetroChina の誤り?

クウェート、中国に製油所 BP、シェル、シノペックと合弁で
50億ドル投資 広東省に


Platts 2005/12/7  

PetroChina confirms Guangdong petchem partnership with Kuwait

Hong Kong- and New York-listed Chinese oil giant PetroChina Wednesday confirmed its intention to team up with Kuwait in developing a petrochemical plant and refinery in China's southern Guangdong province.
"We've signed a MoU (memorandum of understanding) with them (Kuwait) studying the feasibility of developing the project" in Guangdong, a PetroChina press official said Wednesday. He added that it was still too early to give details of the proposed plan as the two parties would only decide on the scale and the investment of the project after they finish with the feasibility study.
Kuwait and China signed the MoU on the proposed developed on Dec 5, according to the official Kuwaiti News Agency. KUNA also cited Kuwaiti Energy Minister Sheikh Ahmed Fahed al-Sabah as saying that although technical specifications of the project had not yet been worked out, the envisaged refinery would probably be expected to have a processing capacity of between 200,000-400,000 b/d. He gave no details about the petrochemical plant.
Examining the project's financial and technical aspects would be the next step after the MoU, he added.
The proposed Guangdong refinery and petrochemical plant development is in line with Kuwait's long-term strategy of entering more oil markets which are able to utilize Kuwaiti crude, most of which is sour. It would also fall in line with the emirate's target to raise production capacity from a current 2.7-mil b/d to between 3.5- to 4-mil b/d in the coming decade, the minister said. He also said that China's current level of Kuwaiti crude imports was lower than desired, but that he expected they would increase after the opening of a representative office in China for national oil company Kuwait Petroleum Corp.
According to Chinese and Kuwaiti media reports, the two parties would likely complete their feasibility study and necessary approvals from
government authorities in 2006. Construction of the estimated $5-bil project would take about four years, which points to a 2010 completion date if works progress smoothly. Other partners in the proposed project are Kuwait's Petrochemical Industries Co and Kuwait Petroleum International. Both China and Kuwait have agreed to invite leading international companies in both refining and petrochemical sectors to take part in the project, the reports said.
PetroChina has long had ambition to penetrate the south China oil product market with the establishment of its own refining facilities there. It has shown its interest earlier in establishing a 10-mil mt/yr (200,000 b/d) refinery in Qinzhou city, China's southern Guangxi Zhuang Autonomous Region.
Until now, refineries owned and operated by PetroChina are in northern and northwestern China. After meeting the oil requirements in the northern and northwestern markets, PetroChina sells and distribute a large part of its oil products output for the south China market under term contracts through its counterpart Sinopec Corp, which dominated the refining and petrochemical sector in the country's southern, eastern and southwestern provinces. It also sells and markets a small portion of its output through its regional offices in the Sinopec-dominated markets. A refining base in southern China would therefore not only expand PetroChina's presence in the market, but also reduce transportation cost to moving its products output from northern provinces to the south.

日本経済新聞 2005/12/29             発表

東洋エンジ 石油代替燃料 中国で技術支援 最大プラント設計


2006/1/4 東洋エンジニアリング


 東洋エンジニアリング株式会社(TEC、取締役社長 山田 豊)は、中国国営石炭会社である寧夏煤業集団有限公司が中国西北部に位置する寧夏回族自治区に新設する、石炭原料で世界最大の年産21 万トンの燃料用DME 製造設備のライセンス供与と基本設計並びに触媒提供の業務をこのたび受注いたしました。

■ 客 先:寧夏煤業集団有限公司 (Ningxia Coal Group Co., Ltd.) (注)
■ <本社:寧夏回族自治区・銀川市>
■ 受注者:TEC
■ 建設地:寧夏回族自治区東部 <添付>
■ 対象設備:年産21万トンのDME製造設備
■ ライセンサー:TEC
■ 役務内容:ライセンス供与、基本設計、触媒供与及び技術サービスの供与
■ プラントの完成:2007年末を予定
■ 受注の意義:

世界で初めて年産1万トンの燃料用DME製造を完工し、引き続き年産11 万トンの設備を四川省瀘(ろ)州市で建設中の当社にとって、今回で3基目のDME受注となります。


2006/1/12 Platts

Methanol plants in north China close due to feedstock shortage

Methanol production at Weishi Chemical in north China's Henan Province has been stopped for several months due to a coal shortage, according to a source from the company.
"We cannot find coal supply at present as many coal mines have been shut down for safety concerns. We are unable to resume production until we can get enough coal supply," the source said.
Weishi Chemical is one of the major coal based methanol producers in north China with a capacity of 180,000 mt/yr.

Puyang Methanol, another methanol producer in the same province, has also stopped production due to a suspension of natural gas supply since Jan 1, and is expected to be back in operation on Jan 15, according to a source from the company. The company's natural gas supplier, Chinese integrated oil major Sinopec Zhongyuan Oilfield, explained that the supply cut was due to frozen pipelines.
Puyang Methanol Co has a methanol capacity of 120,000 mt/yr, of which about 90,000 mt/yr is natural gas based and the remaining 30,000 mt/yr is coal based. The coal based unit also stopped operation due to the coal shortage.
The company has a coal based methanol capacity expansion of 200,000 mt/yr scheduled to be completed by 2008, the source added.

Platts 2006/1/20

China's Tianji to build a 600 kt/yr methanol plant by end of 2007

Tianji Coal Chemical Industry Co of Changzhi City in North China's Shanxi Province is set to build a 600,000 mt/yr methanol plant by the end of 2007, an official from the company said Friday. The National Development and Reform Commission has approved the project and preparation has been completed.
The company produces methanol via gas from associated coal cokers of its own, and all its methanol products are to be sold on the domestic markets.
The company is also evaluating the feasibility of building a dimethyl ether plant, depending on the market situations of both methanol and DME.

Platts 2006/1/25

China's XinAo Group to build 2.4-mil mt/yr methanol plant by 2010   新奥集団  内蒙古鄂尓多斯

China's XinAo Group is scheduled to build a 2.4-mil mt/yr methanol plant by 2010, said an official from its industrial base in Ordos Inner Mongolia in North China Wednesday.
The project is to be built in two stages. In the first stage, a
600,000 mt/yr methanol plant and an associated 400,000 mt/yr dimethyl ether plant would be built by the end of 2007. In stage two, a 1.8-mil mt/yr methanol plant would be finished by 2010.
The construction is scheduled to start on March 27, 2006, said the official. And the construction of stage two of the project is scheduled to start once stage one is completed at the end of 2007.
The methanol production is to be coal based, with all necessary coal to be provided by the company, as it has already acquired coal mining permits.
Its methanol and DME products are to be sold through its distribution network across China, with its DME products also to be used as fuel.
The company plans to study market situations to decide whether to build an associated DME plant for the second stage methanol unit.
XinAo Group is a Hong Kong Exchange listed independent company, specializing in urban gas distribution and gas vehicle and storage facilities manufacturing, among other areas.

XinAo Group 新奥集団

Founded in 1989 with its headquarter located at Langfang Economic & Technological Development Zone in Hebei province河北省廊坊, XinAo Group is a comprehensive business conglomerate engaged in the field of clean energy development and exploitation, with major industries covering urban gas, energy equipment, bio-chemical business, energy chemical business and real estate development etc. By the end of 2004, the Group employs over 10,000 staff with a total assets nearly RMB 10 billion, more than 80 wholly-owned firms, holding subsidiaries and various branches throughout 50 cities at home as well as international metropolises such as Hong Kong, Melbourne , London , and Boston .

2006/1/25 BASF

BASF, Huntsman and Chinese companies consider construction of additional MDI plant in China

Plant to have world-scale capacity of 400 kt/a crude MDI
Startup of new MDI plant planned from 2010 onward
Several sites being evaluated
MDI/TDI project in Caojing progressing as scheduled

BASF, Huntsman, and a group of Chinese companies - Shanghai Hua Yi (Group Company), Sinopec Shanghai Gao Qiao Petrochemical Corporation and Shanghai Chloro-Alkali Chemical Co., Ltd. - are considering the construction of a new MDI (diphenylmethane diisocyanate) plant in China to meet growing demand for this product. Several sites for the plant are being evaluated. The startup is planned from 2010 onward, and the plant is expected to have a capacity of 400,000 metric tons per year of crude MDI.

The market for polyurethanes in China is expected to grow at a double-digit rate and will become the largest in the world within the next decade,said Jean-Pierre Dhanis, President of BASF's Polyurethanes division. We want to participate in this dynamic growth, and better serve our customers through local production.

MDI is an important precursor in the manufacture of polyurethanes ? versatile polymers that are used in the automotive and construction industries, in appliances such as refrigerators, and in footwear.

As part of BASF's investment strategy for the Chinese market, an integrated isocyanates complex is currently under construction at the Shanghai Chemical Industry Park in Caojing. This project is progressing as scheduled, and is expected to begin commercial production by mid-2006. The complex is also a joint venture between BASF, Huntsman, and the same group of Chinese companies mentioned above. It will have a capacity of 240,000 metric tons per year of crude MDI, and 160,000 metric tons per year of TDI (toluene diisocyanate). The total cost for the complex is about $1 billion.

BASF is one of the largest foreign chemical investors in China, with sales of almost Euro1.9 billion in 2004 and a workforce of 4,000 employees. By 2010, BASF aims to generate 10 percent of its global sales and earnings in its chemical businesses in China.

2006/1/23 AMEC

AMEC appointed project management contractor of billion dollar coal-to-chemicals development, China

AMEC, the international project management and services company, has been appointed by the Ningxia Coal Industry Group (NCG) as the project management contractor for the development of a new US$1.5 billion coal-to-chemical production complex in the Ningxia Hui Autonomous Region in northwest China.

The value of the multi-million dollar contract has not been announced.

s role, which it will carry out as part of an integrated project team with NCG, will involve setting up project management procedures and taking responsibility for the contracting strategy, construction management advice and support, safety, health and environmental issues, quality assurance, commissioning and start-up management support and several other operational and commercial functions. The project will use AMEC's proprietary project management system, CONVERO.

Work on the new facility, which is designed to produce
540,000 tonnes of polypropylene per year, will begin in February this year and will be completed in early 2009. Polypropylene is a chemical product usually derived from oil refining and ethylene processing but the project will use coal as the feedstock, which will come from large reserves in the Ningxia area.

The complex will include a
coal gasifier plant, a methanol and methanol-to-propylene unit, and a polypropylene unit.

China is making major investments in plants to convert coal into oil, gas and chemicals to reduce its reliance on foreign imports, and the Ningxia contract marks our entry in to this new and fast-growing sector, said Neil Bruce, managing Director of AMECs Oil and Gas business. It also reinforces our position as a leading project management contractor in China, building on our success on the multi-billion dollar SECCO Ethylene plant and the recent award of a technical services contract for Petrochinas Dushanzi project.

Notes to editors:
AMEC plc is an international project management and services company that designs, delivers and supports infrastructure assets for customers worldwide across the public and private sectors. AMEC employs 44,000 people in more than 40 countries, generating annual revenues of around
£5 billion. AMECs shares are traded on the London Stock Exchange where the company is listed in the Support Services sector (LSE: AMEC.L).

Ningxia Coal Industry Group is a state-owned company, owned jointly by provincial and central government. The major holder is
Shenhua Group which is the largest coal industry group in China, owned by the central government.

日本経済新聞 2006/3/18

住友商事 中国で医薬強化 増資へ新制度活用も


日本経済新聞 2006/3/23

中国 設備過剰で法的手段も
 新規参入を制限・小規模企業を淘汰 地方に通達 電カでも懸念


電力   2007年に需給均衡。20年に発電能力は7割増の約9億キロワット
自動車   現有の生産能力は800万台で、10年には1800万台へ
鉄鋼   05年の粗鋼生産は前年比24%増の3億5000万トン
セメント   05年の生産は04年比12%増。需要は旺盛だが能力増強も活発
コークス   生産能力は3億2000万トン。政府は今後3年間、3億トンに抑制
アルミ   年産能力約1200万トンのうち、4割前後が余剰とみられる

Platts 2006/3/28

China's Maoming completes BTX expansion, first supply out H1 May

China's Sinopec Maoming has completed expansion works at its 460,000 mt/year BTX unit, slightly earlier than scheduled, a company source said Tuesday. The company was expected originally to complete expansion on Mar 30.
The BTX plant is being expanded by 310,000 mt/yr from an original capacity of 150,000 mt/yr.
"We will restart the expanded plant in April and supplies will be released to the market by the first half of May," the source said. Maoming's newly expanded BTX plant, with a total aromatics capacity of 460,000 mt/year, includes a 179,000 mt/year benzene unit, a 92,200 mt/year toluene unit and a 84,000 mt/year MX unit.
Sinopec Maoming is a subsidiary of the state-owned oil and petrochemical company Sinopec, and situated in south China's Guangdong Province.

Platts 2006/3/31

China's Fushun gets nod on 800,000 mt ethylene plant expansion

Fushun Petrochemical in China's northeastern Liaoning province has received a green signal from the Chinese central government on its 800,000 mt/year ethylene production capacity expansion plan, a PetroChina official said Friday.
Fushun Petrochemical, a refining and petrochemical subsidiary of publicly listed Chinese oil giant PetroChina, has 10.7 million mt/year of crude processing capacity and
175,000 mt/year of ethylene production capacity in Liaoning's Fushun city.
The estimated Yuan 20 billion ($2.49 billion) expansion program would lift Fushun Petrochemical's annual ethylene production capacity to about 1 million mt upon completion. Fushun Petrochemical is the second Chinese oil products and petrochemicals producer which received approval from the central government this month on its ethylene production expansion.

Beijing had given it the go-ahead for its
1 million mt/year new ethylene plant development in eastern Zhejiang province, Sinopec Zhenhai Refining and Chemical Company said earlier this week. ZRCC officials noted a project of such scale would normally take three years to develop.

The Chinese government has planned for 10.58 million mt of new ethylene capacity addition between 2006 and 2010. During the country's 11th Five-Year Plan period, the expansion and revamp of existing ethylene production facilities would contribute 4.38 million mt of new capacity. The construction of new ethylene projects would add another 6.2 million mt to the national total during the five-year period.
China produced 7.56 million mt of ethylene in 2005, representing an increase of 20.4% on the year. Its designed annual ethylene output capacity reached about 8 million mt last year.

China Chemical Reporter 2006/3/29

Zhenhai 1 Million T/A Ethylene Project Approved

On March 17th, 2006, the National Development and Reform Commission announced that it has approved the 1 million t/a ethylene project in Zhenhai Refining & Chemical Co., Ltd., located in Zhenhai, Zhejiang province. According to the whole plan of China Petrochemical Corporation (Sinopec Group), the project is scheduled to be started construction in 2006 and completed in 2009.

Zhenhai got approval of 800,000t/y ethylene project from NDRC in 2004 and after that they changed their plan to 1,000,000t/y.
The procedures of ZRCC new ethylene project as follows:
1. send to NDRC for approval,
2. get nod from NDRC, and then sent to State Council for approval,
3. State Council give nod and feedback to NDRC,
4. NDRC give feedback to ZRCC

Platts 2006/4/10

China's construction sector will absorb new SM capacity: Do How

Poor styrene monomer cash margins have not deterred China's Do How Chemical (Donghao) from a planned expansion of its plant in Changzhou as the firm expected the construction sector in China's northern provinces to absorb its additional output, a company source said Monday. Do How will take down its SM plant later this month for debottlenecking. Sources close to the firm gave varied accounts of the plant's proposed new capacity, ranging
between 180,000 mt/year to 216,000 mt/year.
The plant currently has the capacity to produce
150,000 mt/year, but has rarely operated beyond 80% of its capacity since it started commercial production in December 2005. A company source attributed the protracted reduced runs to a series of mechanical problems, and claimed they were unrelated to weak economics.
The plant outage is slated to start from April 25 and last two weeks. Do How plans to pack in multiple major jobs during the short period of time, chiefly the replacement of many of the facility's malfunctioning parts and the capacity expansion itself. Many established SM producers in Japan, South Korea and Taiwan typically shut their plants for a month for maintenance alone.
Do How plans to operate the plant at full capacity from May 10, after the expansion is completed. "We set an internal target to produce about 18,000 mt of styrene monomer per month thereafter," said a source. Do How Chemical had been cutting back on its benzene spot purchases from the international market since February in favor of buying locally from the state-owned oil, gas and petrochemical firm Sinopec.
Sources close to Do How said it has decreased its benzene spot purchases in the last two months by almost 3,000mt. Previously Do How Chemical typically bought about 9,000mt of benzene monthly from the spot market.

Platts 2006/4/26

China Dalian Petrochem to start new PP line end-May or early June

PetroChina Dalian Petrochemicals Corp in China's northeastern Liaoning province plans to start-up its new polypropylene unit by the last week of May or early June, a company source said Wednesday.
According to the company's original timeline, the unit was supposed to begin operations at the end of last year or early this year. However, the company had to delay the start-up as safety checks on some of its plant equipment required took longer than initially projected.
Dalian Petrochemicals has no problems in acquiring propylene feedstock for its new plant. Its entire propylene feedstock would be sourced from its refinery at the same site.
The company operates two other PP facilities with a c
ombined capacity of 125,000 mt/year at the same site.

Asia Chemical Weekly 2003-7-18

China's Dalian Petchem likely to delay PP startup to Q2 '05

Dalian Petrochemical expects to delay the startup of a polypropylene (PP) project in Dalian, Liaoning, China, to the second quarter of 2005, a company source said.

The 200 000 tonne/year project was originally expected to come onstream at the end of 2004 or in Q1 2005.

The source said the startup looked likely to be delayed as work on the project was held back due to travel restrictions during the Sars epidemic in China earlier this year.

The project will use
Basell's technology. Propylene feedstock will come from Dalian Petrochemical's own refinery.

The source added that the company is still considering building a paraxylene (PX) plant that will be integrated with its refinery. Chinese government approval has been sought to expand the 10.5m tonne/year refinery to 20m tonne/year.

However, the PX project is still in its early stages, as parent company PetroChina has yet to approve it.

Platts 2006/5/8

Jilin PC delays phenol-acetone unit restart for the third time

China's Jilin Petrochemical in Jilin Province has delayed the restart of its 120,000 mt/year phenol-acetone plant for the third time, a company source said Monday. The company had expected to resume operations from May 8.
However, it had not received the green signal from the Chinese government to restart the plant Monday. "We are uncertain when we will receive approval from the government," the source said. There had been "numerous enquiries" by the company requesting the Chinese government to expedite the process.
In November 2005,
the company had stopped phenol-acetone production following an explosion at one of its 70,000 mt/year aniline units at the same site on November 13. The blast had polluted the Songhua River with benzene, aniline and nitrobenzene. The company has two aniline units at the complex.
The incident prompted China's State Environment Protection Administration to give strict orders to the company to start modifications of its waste management system at its petrochemical complex. All modification work at the plant as well as test run of its systems had been successfully completed by end-April.
In related news, Jilin Petrochemical has also shelved its plans of selling the second 70,000 mt/year aniline unit at the same site, which it had contemplated doing so in early March. The first 70,000 mt/year unit, which exploded in 2005, has been permanently taken offline. "The aniline market appears profitable this year, so we have put off plans to sell the second
unit," the source said.

2006/5/18 Platts

Sinopec Baling PC finishes CPL plant expansion

Sinopec's Baling Petrochemical has completed expansion work
at its 140,000 mt/year caprolactam plant in Yueyang, Hunan, China, three months ahead of schedule, a company source said early Thursday. The company plans to ramp up operations to full capacity in the coming weeks.
According to the company's original schedule, the capacity expansion was supposed to be completed by end-July or early August 2006. However, owing to the early arrival of its required plant equipments, the company was able to complete construction ahead of time.
Meanwhile, Baling Petrochemical is looking to double its caprolactam capacity
by a further 140,000 mt/year next year. Work would commence in the begining of 2007.
"Our aim is to alleviate China's reliance on international imports," the source said. As per estimates on an average, China imports 60-70% of its caprolactam requirements. China requires an average of 70,000 mt of caprolactam each month and 40,000-45,000 of its requirement were supplemented by imports. The source added that with several large expansion projects in the pipeline, China's imports could possible decrease by 10% by next year.
In related news,
DSM Nanjing Chemical is in the midst of expanding its 140,000 mt/year caprolactam plant by 20,000 mt/year to 160,000 mt/year. Its is scheduled to be completed by early 2007.

2006/5/27 日本経済新聞

ナイジェリアの製油所 中国石油が買収交渉
 中国紙報道 投資額20億ドルにも


Platts 2006/6/14

China's Hbon Chemical aims to start-up new BTX unit by end-2007

China's Hbon Chemical plans to start-up its new 250,000 mt/year benzene, toluene and mixed xylenes unit in Zhejiang either by October or November 2007, a company source said Wednesday. Construction begun in early May 2005 The source added that Hbon Chemical might consider expanding its BTX capacity to 300,000 mt/year.
The company's BTX unit would be relying primarily on imported naphtha feedstock. Meanwhile, Hbon Chemical intends to sell its benzene produce mainly in eastern China. "We are currently in the midst of negotiations with end-users in eastern China. If possible, we hope to sell most of our benzene output on contract," the source said.
Ningbo Hongbang Petrochemical and Ningbo Kaifeng Petrochemical, with each holding 20% stake in Hbon Chemical, while the remaining 60% stake is held by a foreign investment firm.

Platts 2006/6/15

Shanghai Gaoqiao to start-up SBR unit in July, ABS unit end 2006

China's Shanghai Gaoqiao is set to bring on stream its
100,000 mt/year styrene butadiene rubber unit in July, a company source said Thursday. It was preparing for a test run and is expected to get on-specification material in July.
The company would be sourcing its styrene and butadiene feedstock from its neighbour Shanghai Secco Petrochemical's 500,000 mt/year styrene plant. Gaoqiao's SBR output would be mainly sold in the domestic market.
Meanwhile, Gaoqiao plans to start-up a new
200,000 mt/year acronitrile-butadiene-styrene plant by the end of 2006, the source said. Secco would be providing 12,000-13,000 mt/mth of styrene feedstock for the unit. Gaoqiao would be selling its ABS product primarily in the domestic market, with some portion exported to Japan or other countries depending on market demand.

2006/6/19 Albemarle

Albemarle to Build Phosphorus Flame Retardants Plant in China

Global flame retardant leader Albemarle Corporation will build a new phosphorus-based flame retardant manufacturing facility at its technology and business center
in Nanjing, China. Products from the new plant, which is expected to be fully operational in the second half of 2007, will help meet growing global demand for fire-resistant polymer systems and resins for construction and electronics materials.

From its new plant, Albemarle will supply
phosphorus flame retardants for rigid and flexible polyurethane foams used in insulation and for resin blends such as PC/ABS and PPE/HIPS, used in electronic enclosures. The products, which will be marketed worldwide, are expected to help meet strong demand particularly in Asia, where construction and electronics markets are thriving.

"We are expanding our operations for an expanding market," said Luc van Muylem, Albemarle Division Vice President of Flame Retardants, about the new facility. "We are already helping the Asian plastics market meet its growth potential through advanced local customer technical service from our Nanjing site, primarily for construction and furniture markets, and will soon do the same for electronics plastics makers."

Albemarle began construction of its
wholly owned Nanjing technology and business development center in December 2005. Some business and technical service work is already conducted from the site, and the center is expected to be fully operational in the third quarter of 2006. The center will provide technical support for Albemarle's polymer additives and polymer catalysts customers in the Asia Pacific region, as well as research to expand additive applications.

"This manufacturing investment is another step in the development of our new Nanjing site, and further strengthens Albemarle's flame retardant leadership position, especially in the rapidly growing Asia Pacific market," said John Dabkowski, Albemarle Vice President of Polymer Additives.

Albemarle's patents and market position in brominated, mineral and phosphorus flame retardant technologies, and its commitment to consumer fire safety advocacy and product stewardship make Albemarle the world leader in flame retardant solutions for polymers. The company's products help prevent fire in or improve the fire safety of materials found in circuit boards, connectors and enclosures for electronic and electrical devices; comfort foam in furniture and automobiles; wire & cable; and roofing, rigid insulation foam, adhesives, coatings and other construction materials.

Albemarle Corporation, headquartered in Richmond, Virginia, is a leading global developer, manufacturer and marketer of highly engineered specialty chemicals for consumer electronics; petroleum and petrochemical processing; transportation and industrial products; pharmaceuticals; agricultural products; construction and packaging materials. The Company operates in three business segments -- Polymer Chemicals, Catalysts and Fine Chemicals, and serves customers in approximately 100 countries. Learn more about Albemarle's flame retardants at http://www.albemarle.com.

2006/6/26 Valpar

Valspar to Acquire Majority Interest in Huarun Paints
Leading Chinese Coatings Company Expands Valspar
s Customer Base in Fast-Growing Market

The Valspar Corporation, a leading global coatings company, announced today that it has agreed to acquire a significant majority of the share capital of Huarun Paints Holdings Company Limited (Huarun Paints), one of Chinas largest independent coatings companies, from Champion Regal, a Hong Kong based investment company. Founded in 1991, Huarun Paints has grown to become one of Chinas leading domestic suppliers of wood and furniture coatings and a rapidly growing supplier of architectural coatings. Huarun Paints achieved sales of approximately $180 million in 2005, primarily through its focus on the development of an extensive network of distributors and exclusive retail paint stores throughout China. The cash purchase transaction is expected to close by the end of July and to be slightly dilutive to Valspars earnings in fiscal years 2006 and 2007.

Valspar is pleased to expand its presence in China with Huarun Paintsmanagement team and current shareholders as our partners,said William Mansfield, Valspars President and Chief Executive Officer. We have a high regard for the entrepreneurial culture established by the companys founders and the superb senior management team leading its growth. As a group, the companys current shareholders and management team will retain a minority interest in Huarun Paints. They have developed an outstanding distribution network with significant growth potential. By combining the resources of our two companies, we intend to expand Huarun Paintsproduct offering and geographic reach in the worlds fastest growing coatings market.

With fiscal 2005 sales of $2.7 billion, Valspar is a global leader in the paint and coatings industry, with a broad range of products including industrial, architectural, packaging, automotive refinish and floor coatings and specialty polymers and colorants.

Huarun Paints Holdings Co.,Ltd.

Huarun Paints Holdings Co.,Ltd. is a large-scale group company covering the trades of chemical painting, metal package, hardware and art ware, trading, and painting engineering, etc., with its headquarters located in Hong Kong, China.

Among the companies of Huarun Group, China Guangdong Huarun Paints Co. Ltd. occupies the principal status. Originally established in 1991, it is a high and new tech enterprise specialized in the research and development, production and sales of the series products such as high class furniture painting, water born paints, architectural decoration and fitment paints and adhesives, etc.

Growing up in the
Hometown of Paints of China, China Guangdong Shunde Huarun Paints Co. Ltd. has become the leader in the painting industry in China for years.

Huarun Paints possesses a production base of 7 square kilometers, which adopts full process monitoring technique of Germany. The output and sales volume of the products have been standing in the front position in the same industry in China for many years.

Huarun Paints has collected the top scientific research talents of the industry in China and employed several painting research and development specialists from Germany and other countries, so it has been standing in the front of the technical innovation of painting products for many years by basing itself at an advanced starting point, adhering to high quality and pursuing full range quality control. This company has quite a few items of technology and products awarded with prizes or honors by the country every year.

Huarun Paints was the first in the painting industry of China to pass the certifications of ISO9001Quality System, ISO14001 Environmental System and Environmental Symbol Product of China, etc. Moreover, the trademark of
Huarunhas been recognized as a Famous Brand of Guangdong Province, China, and the products have been appraised as famous brand products of Guangdong Province, China. Huarun Paints has become one in the first batch of enterprises awarded with the honor of Exemption from Inspection on Product Quality by the Nation.

Huarun Paints has established a unique sales network in the painting industry, covering the large, medium and small sized cities and towns all over China with several hundreds of dealers and a few thousands of Specialized Shops, through which the products can be distributed to various places all over China quickly and the requirements of the customers can be responded more efficiently and effectively.
Huarun Paints provides perfect after-sales services to the customers with technical innovation and the marketing strategy of promoting sales and providing services simultaneously, and has established technical service centers in a few dozen of main cities in China and possesses a team of technical engineers with profound construction experiences.

As one of the key high and new tech enterprises of the country, Huarun Paints has established long-term and steady partnership with quite a few famous companies in the world to ensure exchange of the latest research and development technology and the provision of high quality raw materials.

Huarun Paints Group would like to conduct full range of cooperation and exchange with the enterprises all over the world in the fields of chemical painting, metal package, hardware and art wares, trading and painting and fitment engineering, etc.

Valspar Corporation

The Valspar Corporation is one of the largest global coatings manufacturers in the world, providing coatings and coating intermediates to a wide variety of customers. Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality, and the best customer service in the coatings industry.

With more than 7,000 employees in over 80 locations around the world, Valspar is in a truly unique position to supply customers with the coating solutions they need. Our products include:
Paints, varnishes, and stains for the do-it-yourself and professional markets
Coatings and inks for rigid packaging, particularly food and beverage cans
Factory applied coatings for industrial customers and original equipment manufacturers
Automotive refinish and specialty coatings
High performance floor coatings for industrial, commercial, and sports flooring applications
Polymers and dispersions for paint and coatings manufacturers, and more
Interior protective coatings and external basecoats and overvarnishes with highest abrasion resistance for aluminium monobloc aerosol cans and bottle cans
Basecoats and internal protective coatings for aluminium collapsible tubes
Matt, soft-feel and other special effect coatings for plastic and glass containers for the cosmetic industry
UV varnishes, waterbased varnishes and laminating adhesives for the Graphic Arts market
Primers, coatings and varnishes for industrial coils on steel, HDG and aluminium for the building industry

Headquartered in Minneapolis, MN, our diverse array of products makes us one of the most complete suppliers anywhere, and the sixth largest paint and coatings company in the world. Please visit our products page to learn more about a specific Valspar offering.

2006/7/12 China Daily

2 coal-to-oil plants to be built

State-owned Shenhua Group's Ningxia affiliate has teamed up with Royal Dutch Shell and South Africa-based Sasol to build two coal-to-liquids plants in the northwestern autonomous region with an investment of up to US$12 billion.
The plants will help enhance energy security and enjoy good market prospects because of soaring oil prices, analysts said.

Shenhua Ningxia Coal Industry Company, a subsidiary of the biggest coal company in China, yesterday signed a joint study agreement with Shell Gas & Power Development BV to build a facility to convert coal into oil products such as petrol and diesel.
The new plant, to be set up at the
Ningdong coal production base, will cost US$5-6 billion, said Lim Haw Kuang, executive chairman of Shell Companies in China.
The study is expected to be completed by 2009, and the plant will be able to yield
3 million tons of oil a year, or 70,000 barrels per day (bpd) by 2012, Shell said.
The plant will use
Shell's indirect coal liquefaction technology, which turns coal to gas and then liquefies it into fuels.

The plants using the technology will break even if global oil prices hover at US$25-27 per barrel, said Qi Tongsheng, vice-governor of Ningxia Hui Autonomous Region.
Analysts say global oil prices are unlikely to drop below US$40 per barrel in the near term.

The agreement on the study followed a memorandum of understanding inked in February between Shell and Shenhua.
Lim said the Chinese company would take a lion's share in the new venture, but Shell's stake was also "fairly big," without elaborating.
Both sides have yet to decide how to retail their products but Yan Guohui, a senior engineer with Shenhua Ningxia, said one option would be to set up joint service stations with Shell or sell to the country's top two oil firms, Sinopec and PetroChina.
"Talks haven't gone that far, and we will elaborate on the retailing details later," Lim told reporters yesterday at Yinchuan, capital of Ningxia.

Another similar project is also being planned in Ningxia between
Shenhua and Sasol, one of the global leaders in coal liquefaction technologies.
Shenhua last month signed a co-operation agreement with Sasol to develop an
80,000 bpd coal-to-oil plant in Ningxia.
"The two plants are almost the same in terms of technology, investment and timescale," said Wang Jian, president of Shenhua Ningxia.
Qi said the Sasol plant might begin operation "months" after Shell, in 2012.

While the two Ningxia plants adopt the overseas indirect technology, Shenhua will test its own direct technology which turns coal into oil products without the gasification process in the Inner Mongolia Autonomous Region.
The plant, located at the Ordos Basin, is expected to come on stream as early as the end of next year, Shenhua Vice-President Zhang Yuzhuo said earlier.

A pioneer in developing the coal-to-oil business in China, Shenhua aims to convert coal into 30 million tons of oil products at eight plants in four northern provinces by 2020.
China is expected to use 115 million tons of petrol and diesel by 2010, a figure expected to reach 216 million tons by 2020, Zhang said last month.

日本経済新聞 2006/7/19

ぺトロカザフ株 中国石油、33%売却 カザフ国有石油に 脅威論に配慮


2006/8/18 Cabot

Cabot Corporation Announces Start-Up of New Carbon Black Facility in Tianjin, China

Cabot Corporation announced today the start-up of its new, world-class carbon black facility located in Tianjin, China. The state-of-the-art facility is a project of Cabot Chemical (Tianjin) Co., Ltd., an equity joint venture between a Cabot subsidiary, Cabot (China) Limited, and Shanghai Coking Chemical Company, a member of the Huayi Group. Cabot Chemical (Tianjin) Co., Ltd. invested approximately US$60 million to construct the plant with an annual capacity of 105,000 metric tons.

The new facility includes two production units that utilize the latest Cabot manufacturing technology incorporating advanced environmental systems for both energy recovery and flue gas de-sulphurization. Both new units are operating at full capacity to support the growing demand in the China market.

The facility includes two production units, one of them has capacity of 61 000 tonne/year and has been completed on Feb. 2006.
The newly added is second carbon black unit, it has capacity of 44 000 tonne/year, and which make the total capacity of Cabot reached 105 000 tonne/year in Tianjin Economic Development Area (TEDA), Tianjin city.

Cabot Chairman and CEO Kennett F. Burnes said, "Cabot is very pleased with the successful start-up of the Tianjin facility, one of the most technologically advanced carbon black manufacturing sites in the world. Working together with the highly skilled local workforce and with the continued support of local officials in China, we are committed to supplying high-quality carbon black products to meet customers' growing demand."

At the official opening ceremony, Mr. Xinsheng Zhang, president of Cabot (China) Limited said, "Constructed in only 14 months, this greenfield project includes the latest environmental and energy-efficient technology. The successful construction and production startup of this state-of-the-art facility are the result of the project team's hard work and strong support from the Tianjin and TEDA governments."

"Effective execution of this project reflects the strength of our longstanding relationship with our partner, Cabot Corporation. We look forward to building on the success of this relationship," said Hu Gongming, chairman of Cabot Chemical (Tianjin) Co. Ltd. and Party Secretary of Shanghai Coking Co., Ltd. Cabot and Shanghai Coking have been joint venture partners since 1988.

Cabot Corporation is a global specialty chemicals and materials company headquartered in Boston, Massachusetts, USA. Cabot's major products are carbon black, fumed silica, inkjet colorants, capacitor materials, cesium formate drilling fluids, and aerogel materials. The website address is: http://www.cabot-corp.com.


2006/8/16 Cabot

Cabot Corporation Announces Completion and Start-Up of First World Class Fumed Silica New Facility in Jiangxi Province, China

Cabot Corporation announced today the start-up of China's first world-class fumed silica manufacturing facility located in Jiangxi Province, China. The facility is a project of Cabot Bluestar Chemical (Jiangxi) Company Ltd., a joint venture between a Cabot subsidiary, Cabot (China) Limited, and Bluestar New Chemical Materials Co., Ltd., a member of the ChemChina Group. Cabot Bluestar Chemical (Jiangxi) Company Ltd. invested approximately US$27 million to construct the plant with an annual capacity of 4,800 metric tons.

The new facility is designed to primarily serve the growing fumed silica market in China. Cabot Chairman and CEO Kennett F. Burnes said, "The adoption of fumed silica in industrial applications in China is growing rapidly. We are confident that with the successful commissioning of our new facility, we are well-positioned to meet the needs of our customers in China by providing high quality product in a timely manner."

Mr. Ren Jianxin, president of ChemChina, parent of China National Bluestar Group, said, "The successful production start-up of this high quality fumed silica plant is the result of close cooperation between Cabot's project team and Bluestar's Xinghuo plant personnel. This project reflects the close relationship between Cabot and ChemChina at all levels."

"Our domestic customers are anxious to use the products from our Jiangxi facility because this will significantly shorten their transportation cycle and provide a more reliable source of supply," said Mr. Xinsheng Zhang, president of Cabot (China) Limited. "We expect immediate full utilization of the production capacity of this plant."

About Cabot Corporation

Cabot Corporation is a global specialty chemicals and materials company headquartered in Boston, Massachusetts, USA. Cabot's major products are carbon black, fumed silica, inkjet colorants, capacitor materials, cesium formate drilling fluids, and aerogel materials. The website address is http://www.cabot-corp.com.

About China National Bluestar (Group) Corporation

China National BlueStar (Group) Corporation is a large-scale state-owned enterprise, a subsidiary of ChemChina Group Corporation. Headquartered in Beijing, BlueStar Co. focuses on chemical products and new materials. ChemChina has total assets of RMB 30 billion, and over RMB 30 billion sales revenue with more than 43 subsidiaries and scientific research institutes. Bluestar's website address is http://www.china-bluestar.com/

2006/8/21 Solvay

Solvay to launch fluorochemicals production in China
Joint Venture Paves the Way for Development of High-Value Fluorine Business in Asia

Solvay announces today that it has signed an agreement with
Zhejiang Lantian Environmental Protection Hi-Tech Co. Ltd for the creation of a joint venture for the production and supply of hydrogen fluoride (HF ふっ化水素), an essential building block for many high-value added fluorinated products.

Pending the relevant regulatory approvals, the joint venture is scheduled to start operating in 2007, under the name Zhejiang Lansol Fluorchem Co. Ltd. The production unit, with a total annual production capacity of 20.000 tonnes, will be located in the Zhejiang Quzhou
衢州Hi-Tech Industrial Park, some 500 kilometres south-west of Shanghai. Lantian will own 70% of the joint venture, while Solvay will hold the remaining 30%.

The total amount of the investment will not be released.

The production of Lansol is essentially aimed at fulfilling the needs of Lantian and Solvay for their downstream activities, such as Solvay
s future production facility for fluorinated chemical specialties in Onsan, South Korea, which is scheduled to start operations in 2007. Solvay has also recently announced the creation of a new world-class fluorinated polymer production unit in Changshu, China, which will be operational in the second half of 2007 and could rapidly expand by adding more products to its specialty polymer production capabilities.

China is the worlds largest producer of Fluorspar, the mineral needed to produce hydrogen fluoride; China and Asia are also the place where Solvay wants to grow its fluorinated specialties activities,explained Vincent De Cuyper, General Manager of the Chemical Sector, Solvay. That is why the creation of Lansol is a new, important step in the implementation of our strategy of sustainable and profitable growth through geographical expansion,he added.

We are also very fortunate to enter into an alliance with Lantian, whose economic, technological and environmental performances are best in class worldwideconcluded De Cuyper.

Zhejiang Lantian Environmental Protection Hi-Tech Co., Ltd. is a leading fluorochemicals producer, mainly devoted to the development and production of substitutes for ozone depleting substances. More than 60% of its products are exported to America, Asia and Europe.

SOLVAY is an international chemical and pharmaceutical Group with headquarters in Brussels. It employs some 30,000 people in 50 countries. In 2005 its consolidated sales amounted to EUR 8.6 billion generated by its three activity sectors: Chemicals, Plastics and Pharmaceuticals. SOLVAY is listed on the Euronext stock exchange in Brussels. Details are available at www.solvay.com