Asia Chemical Weekly 2003-12-12

China's Liaoning (
遼寧) gets nod for C2 expansion, PVC project 遼寧

Liaoning United Chemical has received preliminary approval from the Chinese government for its integrated cracker expansion and polyvinyl chloride (PVC) project in Liaoning, China, according to a Panjin government official.

The Chinese company has proposed expanding the cracker of one of its shareholders,
Panjin Ethylene Industry Corp (盤錦  Peic), to 400 000 tonne/year from 160 000 tonne/year. The company will also double its polyethylene (PE) capacity to 250 000 tonne/year, and build a 120 000 tonne/year polypropylene (PP) facility and a new 400 000 tonne/year PVC unit.

The cracker, PE and PP units will be based at Peic's site in Panjin, while the greenfield PVC plant will be built at Huludao, also in Liaoning, where another shareholder, Jin Hua Group, is based. Peic already produces 50 000 tonne/year of PP.

Startup is targeted for 2006-07.

Besides Peic and Jin Hua, the other shareholders of Liaoning United are Dalian Shide and Liaoning Huajin Group, Peic's parent company.

The integrated cracker-PVC project is
one of 100 projects in northeast China approved by the government recently in a move intended to revitalise ageing industries in the area.

Liaoning hopes to invite Sabic as a joint-venture partner. Sabic has confirmed its interest in the project and plans to complete its due diligence on the project by mid-2004.

While waiting for Sabic to firm up its involvement in the project, Liaoning United is preparing a feasibility study which it will submit to the government. Technology licensors will not be selected until foreign participation is finalised, a Peic source said.

The planned PVC unit in Huludao would be integrated with a
450 000 tonne/year vinyl chloride monomer (VCM) plant. An ethylene dichloride (EDC) unit will also be built and will obtain ethylene feedstock from the expanded cracker in Panjin.

Jin Hua is considering building a chloralkali plant on its own to supply chlorine to the EDC unit.

The official also said discussions were continuing between Liaoning United and commercial banks on lending issues. The integrated project would cost close to Rmb6bn ($724.9m/Euro593.1m).


China Chemical Reporter 2003 <ISSUE>: 34

400 000 T/A PVC Project in Liaoning Approved

The National Development and Reform Commission has recently issued a circular concerning the first group of
national-bond renovation projects for 2003 in the Northeast China old industrial base. 100 industrial fixed-asset investment projects in the three provinces of Northeast China are approved. 52 of them are in Liaoning Province and they have an investment of RMB44.21 billion, accounting for 72.5% of the total. They are the first group of projects to get the biggest amount of national bonds in the province. It shows that the Chinese government has started to implement the policy of enforcing the readjustment and renovation to the old industrial base with national bonds or special funds.
The 100 projects have been defined to be the first group of national-bond renovation projects for 2003 in Northeast China old industrial base. The total investment is around RMB61.0 billion. 52 projects are in Liaoning and 11 of them are petroleum and chemical projects. These projects feature good market prospect, great development advantage, high technical content and satisfactory economic performance. The crude oil processing project in CNPC Dalian Petrochemical Company has a total investment of RMB9.2 billion. The 400 000 t/a ethylene expansion project and the 400 000 t/a PVC construction project in Liaoning United Petrochemical Co., Ltd. have a total investment of RMB9.9 billion. These major projects will become a pillar for the vigorous development of Liaoning petroleum and chemical industry base.

Asia Chemical Weekly 2003/12/18

China's Shaanxi to triple methanol output to 600 kt/yr

Shaanxi Yulin Natural Gas Chemical Co plans to increase its methanol capacity to 600 000 tonne/year from 200 000 tonne/year, a company source said.

The company aims to achieve its capacity target by building two new lines in Yulin, Shaanxi, China, which would start up on different dates.

Shaanxi Yulin plans to build a 200 000 tonne/year gas-based methanol line which would come onstream at the end of 2004.

Construction on the planned unit, which will use local technology, will start early next year.

Another 200 000 tonne/year methanol line, using coal as feedstock, will be built later, with startup targeted for 2006. A company source said the municipal government had approved the feasibility studies for both methanol projects.

In addition, the company is seeking investors for a 150 000 tonne/year acetic acid project. It would proceed with this project only when funding had been firmed up, said the source.

As a result, the startup date for the proposed acetic acid unit is unclear.

Asia Chemical Weekly 2003-12-18

Hongkong's Kingboard to bring China phenol-acetone onstream in '05-'06

Kingboard Chemical Holdings is to bring its 200 000 tonne/year phenol-acetone project in Changzhou, Jiangsu, China, onstream at the end of 2005 or in early 2006, a company source said.

The source said design work was being carried out on the project and a US company had been appointed as the licensor. He could not say whose technology the project would be using.

He added that purchasing contracts for benzene and propylene feedstock had been completed. The company plans to use the phenol output in its laminate plants in China.

In Changzhou, Kingboard is also due to start up a 200 000 tonne/year formaldehyde plant later this month and a 60 000 tonne/year hydrogen peroxide plant in H1 2004.

KINGBOARD CHEMICAL HOLDINGS LIMITED (HKSE 148) is a world-leading laminate manufacturer with a global presence in the United States, Italy, Spain, Malaysia, Singapore, Korea, China, and around the world.

SinoCast Dec 18, 2003

MPC to Upgrade Ethylene Annual Output to 800,000 Tons 広東省茂名

Guangdong Maoming Petrochemical Co., Ltd. (MPC) will upgrade its ethylene annual output from 380,000 tons to 800,000 tons.

The company will invest CNY 4.354 billion (USD 1 = CNY 8.2772) in this project that will be formally operated in 2006.

By that time, the company's annual output of ethylene will increase from 380,000 tons to 800,000 tons. Meanwhile, the company's annual sales of ethylene will increase from CNY 5 billion to CNY 10 billion.

Moreover, this project is estimated to promote over CNY 100 billion down stream industrial output value and immensely promote the economic development of the area.

Despite the rapid growth of the Chinese petrochemical industry in the past few years, its supply will only satisfy 62% of the needs by 2005 in Mainland China. So there is a bright future ofthe Maoming ethylene project.

At the same time, the Maoming Government held an investment fair about petrochemical industry and had signed 20 cooperation agreements worth CNY 26.5 billion by far.

日本経済新聞 2004/1/24

中国の家電リサイクル 浙江省などで開始


February 6, 2004 Dow Jones News Service   

Sinopec Mulls Building Ethylene Project In Wuhan, China    湖北省武漢

China Petroleum & Chemical Corp. (SNP) is considering the construction of an 800,000 metric-ton-a-year ethylene cracker in Wuhan, Hubei province, as part of its strategy to expand its petrochemical sector, a company official said Thursday.

The company, better known as Sinopec, and local Wuhan authorities have reached an initial agreement to begin a feasibility study for the project, which is estimated to cost 30 billion yuan ($1=CNY8.28), he told Dow Jones Newswires.

If built, it will be the first ethylene project in Hubei province, central China. Currently, most of the ethylene crackers are located in northern, eastern and southern China.

The official said Sinopec and Wuhan authorities aim to begin construction within the next two years and completion is scheduled for 2008-2010.

Due to rapid economic development, China faces a huge ethylene supply deficit despite the recent surge in construction of new ethylene crackers.

In 2004, China plans to raise its ethylene production to 7 million tons, an increase of 14% from last year.

2004-2-6 Asia Chemical Weekly

Cabot finalises China silica jv, plans $30m plant for '05

US specialty chemicals producer Cabot formally announced the creation Monday of a new Chinese silicas joint venture and plans for a $30m (Euro23.8m) investment in a new plant to produce fumed silica

Boston, Massachusetts-based Cabot will own 90% of the new company called Cabot Bluestar Chemical. Cabot's partner is Bluestar New Chemical Materials, a part of
China National Bluestar Group.

Cabot said the new plant will become China's first world class, fumed silica manufacturing facility. Located near Nanchang in Jiangxi Province, the plant should be operational by late 2005.

It will be Cabot's sixth fumed silica facility, complementing other sites in the US and Europe.

Chemical Week, Dec 18, 2002

China approves PTA project planned by local firm

China's State Council says it has approved a proposal by Sanxin Chemical (Shaoxing) to build a 500,000-m.t./year purified terephrhalic acid (PTA) plant at the Shaoxing Binhai Industrial Zone, Zhejiang. Sanxin is a joint venture of Guangzhou Group Co., Zhejiang Zhanwang Industrial Group, and Zhejiang Jiaboli Textile Industrial. The plant will cost Rmb2.46 billion ($282.8 million) and will be completed by 2004. It will use an undisclosed foreign technology. China consumed about 53 million m.t. of PTA last year, more than 3 million m.t. of which was imported.

Chemical Week, March 5, 2003

China Textile finn selects Lurgi, Eastman technologies for PTA complex.

Textile maker
Union Developing Group of China (UDC; Shenzhen) has selected Lurgi to build a previously announced purified terephthalic acid (PTA) complex at Shaoxing, China, CW has learned. Eastman Chemical is providing its EPTA technology for the PTA unit. Lurgi and Eastman declined to comment, but sources say that signing of the relevant contract is imminent. UDC has received government approval to build the 500,000-m.t./year PTA unit and a nearby 330,000mt/year polyester polymer plant, which are due for completion in two years.

KoSa signed a letter of intent late last year to provide technology for the first of the polymer projects two phases, which will have a capacity of 175,000 m.t/year. The plant will supply polymer to polyethylene terephthalate (PET) bottle resin manufacturers. The polymer plant is scheduled for completion in early 2004. KoSa has agreed to assist UDC with imports of ethylene glycol and PTA feedstock until the PTA plant comes online. KoSa has also agreed to market more than 25% of the polymer to PET producers outside China.

The projects form part of UDC's diversification into chemicals manufacture. The company is China's largest producer of polyester and nylon textiles, and it also has real estate interests. UDC says it expects the polyester market in China to grow at double-digit rates.

The Union Developing Group of China

The Union Developing Group of China Ltd. (hereinafter referred as "UDC"), based on textile industry, has been a state-level large-scale enterprise group directly under the Central Government and has engaged in a diversified economy including Science & Technology, Industry, Commerce, Trade, Finance, Real Estate and so on. It ranks the 280th among the 1000 national largest enterprise-Groups in China in the year of 2000. Among the "Top 500 of World Textile Industry", it also ranks the front and is appraised as No.1 Chinese selected enterprise of the "Top 500 World Textile Industry".

Petro-chemical and developed new material industry is becoming an important industry invested and constructed by the Group in recent years. As the result, UDC has invested and built in Zhejiang Province with two extra large sizes of PTA and PET petro-chemical new material projects. The total investment for this PTA project is around 2.4 billion yuan of RMB with annual production of 600,000 tons. This PTA project is currently of the grandest scale for single line production and fastest for construction in the world. In addition, a PET project, with 1 billion yuan of RMB investment and with annual production of 330,000 tons, is down stream complete set of product of PTA. The PET project also holds the leading position in the projects of the same kind in terms of its scale and its technology. The Group is planning to form up, within the country, the largest, with the most advanced technology petro-chemical industrial base which also holds among the best of its occupied market share.

2004/2/25 Sinopec

Sinopec and BP Will Invest Jointly In Striking Up a World-Class Acetic Acid Project in Nanjing

China Petroleum & Chemical Corporation (Sinopec) announced today that it has chosen BP as its business partner, after comparing BP with another foreign company, to work with for joint construction of an acetic acid project on a world-class scale in Nanjing. In the afternoon of February 25, Mr. Wang Jiming, Vice Chairman and President of Sinopec, met Dr. Byron Grote, Executive Director & CFO of BP Group in Beijing. Both parties exchanged opinions with each other with regard to their cooperation on the above project and mutual collaboration in a more extensive range.

The project will be 500,000 ton acetic acid, jointly developed with BP based on Yangtze Petrochemical'sexisting facilities. Equity share of the parties will be 50:50. This project will make full use of the existing facilities of Yangtze Petrochemical Ltd., and is expected to help meet acetic acid demands in domestic market, adjust the structure of acetic acid industry in China, and reinforce the competitiveness of Sinopec in the market as well.

Mr. Wang Jiming, Vice Chairman and President of Sinopec, expressed,
currently, the global petrochemical industry is in an upturn position of chemical business cycle, while the domestic demands for chemical products are growing robustly. As the largest manufacturer and supplier of petrochemical products in the region, Sinopec will seize the favorable market opportunities, adopt state of art technology, and construct chemical facilities with world-class scale, as well as develop chemical core business. In fact, Sinopec has already cooperated with BP successfully in an acetic acid project in Chongqing(重慶). This new project will further strengthen the two partiesleadership in the acetic acid market at home, and also facilitate the positive evolution of long-term cooperative relationship between both parties.


The project is an acetic acid plant in Chuanwei in Chongqing province, southern China, located alongside Sinopec's Sichuan Vinylon Works (SVW). In the first half of 2000, BP Amoco announced that it was ambitious to extend the Chuanwei plant. This would entail the expenditure of between $50 and $100 million, increasing the capacity by 150,000t/yr to 350,000t/yr. As part of the expansion, the company would also build an 80,000t/yr acetyl acid resin unit at the complex in Chongqing. This new project is expected to take approximately two years to complete.

The new plant is intended to take advantage of the rapid growth in China's economy, which is leading to similarly rapid growth in the demand for acetic acid. According to BP Amoco's estimates, Chinese demand for acetic acid, which is used in textiles, paints, dyes, herbicides and the electronics and food industries, is growing at around 6% a year. The company expects this demand to outpace supply before long.

The capacity of the plant at completion was 150,000t/yr of acetic acid, which is produced by using the BP methanol carbonylation process. According to BP Amoco, the Chuanwei plant meets around 30% of China's total acetic acid demand. Sinopec owns the Sichuan/Chongqing gas field in the eastern part of Sichuan province that provides the reserves as well as the neighbouring plant SVW.

The project went into its construction phase in the last quarter of 1997, and then into production in the third quarter of 2000. The cost of the plant erection was approximately $200 million.

The Lanzhou Design Institute of Gansu province and the Sichuan Design Institute were both involved in design work alongside Lurgi of Frankfurt, Germany. Installation was undertaken by the No. 4 (FCC) Sinopec Company of Tianjin supported by the Beijing Petroleum Engineering Company. Construction work was carried out mainly by the No. 8 Construction Company, Chongqing. Overall management of the project was by a combined BP Amoco and SVW/Sinopec project-management team.

The People's Insurance Company of China Property agreed to offer $172 million insurance cover for the joint venture. PICC Property would provide all-risk insurance cover for installation engineering work at the project.

The Chuanwei plant is the result of a joint venture between BP Amoco and Sinopec, called Yangtze River Acetyls Company. BP Amoco holds a 51% share of the company, with the 44% being held by Sinopec. Chongqing Investment and Construction Company holds the remaining 5%.


化学工業日報 2004/5/26



中国・ASEANニュース速報 2004/5/26






2004/6/18 Platts

Chi Mei may shut China ABS unit, China bans ACN up Yangzi River

Taiwan's Chi Mei was uncertain about the future of its 250,000 mt/yr ABS plant in Zhenjiang, China after
the Chinese government banned transportation of acrylonitrile feedstock up the Yangzi River from Jun 1, a company source said Friday.

China has banned ACN transportation along the Yangtze River for environmental concerns. The government said liquid ACN has high toxicity. Any spillage could result in an ecological disaster on the river. Chi Mei had been transporting ACN from Shanghai via the Yangzi River and through the Changjiang Canal--a trip of around 600 kilometers--to Zhenjiang where Chi Mei has its ABS plant. The trip would now have to be made by trucks from Shanghai, which would be rather expensive, the source noted. If costs would to become too high, the company may consider closing the plant, the source said. Currently the Zhenjiang plant was not short on ACN, as the company was warned of the ban prior Jun 1, allowing the plant to build-up on its ACN stocks, the source added.

日本経済新聞 2004/6/4

三九企業集団 中国政府が資本注入 50億元で調整 外資導入、白紙に


化学工業日報 2004/6/8

塩ビも、スペシャリティ拡充並行 10年売上高600億元めざす



20040721日 Chemnet Tokyo             DSM release





海南島を南中国海の豊富な石油・天然ガス資源と、続々と流入する企業の投資をよりどころに、巨大な産業発展計画を通じて、今後5年以内に同国の重要な石油・天然ガス・化学工業の生産基地に築き上げていく計画を進めている。 (この項上海発=特約)

2004/7/20 DSM

DSM Melamine and China National Offshore Oil Corp. Chemical Ltd. sign a letter of intent for building worldscale melamine plant in China

Today DSM Melamine and China National Offshore Oil Corp. Chemical Ltd. (CNOOCC) signed a letter of intent to study jointly the feasibility of building a new 120 kt melamine plant on Hainan Island, China. The envisaged co-operation between DSM and CNOOCC will be 70 / 30. The total investment amount is expected to be approximately $100 million. The final investment decision by the two companies is foreseen for Q1, 2005.

"We are very happy with the co-operation with CNOOCC. This investment fits in with DSM' s wish to combine economies of scale and advanced technology with an excellent raw material position and market proximity. By teaming up with CNOOCC we expect to achieve the low cost position which is necessary to remain successful in global competition. Via active participation in the Chinese market, DSM will be able to actively maintain DSM Melamine's global leadership position," says Hans Dijkman, Director of DSM Melamine.

The new plant under study will be based on DSM technology. With a capacity of 120 kt it will be the largest melamine plant in the world. Hainan Island has been chosen as location because CNOOCC has an excellent position in natural gas there and operates a modern, large scale urea plant in Dongfang. The technology for this urea plant has been supplied by DSM'slicensing unit, Stamicarbon. In addition, the Hainan government is willing to actively support the project.

DSM Melamine will hold a 70% share in the co-operation and CNOOCC 30%. The parties envisage selling product from the new plant in the fast growing Chinese market as well as in export markets. Assuming a positive investment decision in Q1 2005, the plant is expected to be mechanically complete by the end of 2007.

Mr. Yang Yexin, General Manager of CNOOCC, gave the following comment: "The co-operation with DSM Melamine will be a continuation of our CNOOC headquarters
long-term co-operation with big overseas companies. We will take our co-operation purpose of win-winand achieve our ambitions in this new field. At the same time we will also jointly contribute to the development of Hainan Province.

August 13, 2004 Business Wire

Borden Chemical Venture Opens New Production Facility in China

Asia Dekor Borden Chemical (Heyuan) Company Limited, a joint venture between affiliates of
Borden Chemical, Inc. and China's Asia Dekor Group, has successfully completed the startup of a formaldehyde and resin production facility in Heyuan, China. 河源市

Borden Chemical is managing the formaldehyde and resin plant, which has the capacity to annually deliver 55,000 metric tons of advanced resins for the production of high and medium density fiberboard and particleboard. The major customer for the facility is Asia Dekor (Heyuan) Woods Company Limited, which operates an adjacent new facility that produces fiberboard.

The premium resins produced at the new plant enable the manufacture of wood panels that meet the stringent Super E0 standard for low emissions. The plant includes state-of-the-art controls and will be operated according to Borden Chemical's global environmental and safety standards.

More than six hundred guests attended the opening ceremonies for the facility and the adjacent Asia Dekor plant. Among the dignitaries attending were senior officials from the Guangdong Provincial and Heyuan City governments, as well as representatives of the Chinese Ministry of Forestry, Borden Chemical and Asia Dekor.

In April 2004, Borden Chemical announced the formation of two joint venture companies in China, as well as the opening of its local Representative Office in Shanghai. The Heyuan resin facility is the second manufacturing plant constructed and operating in China through those joint ventures. The other plant, located near Shanghai, manufactures UV-curable materials for fiber optics and other applications.

Borden Chemical, Inc. has annual sales of $1.4 billion and is headquartered in Columbus, Ohio. It is a global source for industrial resins and adhesives, formaldehyde, UV-light curable coatings and adhesives, and other specialty products serving a broad range of markets including the forest products, construction, oilfield, composites, electronics, automotive and foundry industries. Information on Borden Chemical can be found at its website,

About Asia Dekor

Asia Dekor Holdings Limited is a company incorporated in Bermuda and its shares have been listed on the main board of the Singapore Exchange Securities Trading Limited since November 1999.

The Group was established in 1994 and is the leading producer and distributor of laminated floor and related products in China. The Group operates a 36,000 square meters factory based in Shenzhen, China, with a current maximum capacity of 8 million square meters in production of laminated flooring products. The capacity is expected to increase to 16 million square meters by August 2002. In addition, the Group's distribution network spans the entire country and up to 31 March 2002, there are 769 outlets in operation.

The Group's products are sold under three brands:
Power Dekortargeted at the high-end market, Mobifloorfor the middle-end market and Borryfor the mass-end market. The Group's Power Dekorhas been ranked by the China Industrial Information Issuing Centre as the best selling laminated flooring product in China for four consecutive years from 1998 to 2001.


日本経済新聞 2004/9/1

エチレン生産 中国、日本抜き2位に
 2010年能力2.3倍 米欧勢が工場


























Lurgi May 6, 2004

Lurgi is awarded order for a methanol plant in China
Formal Contract Signature at EU in Brussels

On the occasion of the EU-China Business Forum in Brussels, Lurgi has signed the contract for the construction of a methanol plant today in a formal ceremony. Lurgi AG, a subsidiary of mg technologies ag, Frankfurt am Main, is to build the plant on behalf of CNOOC - Kingboard Chemical Ltd. and China National Technical Import and Export Corporation (CNTIC). The contract signing ceremony took place on the occasion of the EU-China Business Forum organized at the European Union in Brussels in honor of His Excellency, Wen Jiabao, Prime Minister of the People's Republic of China. At his first official visit to the European Union in Brussels, Premier Wen Jiabao is accompanied by a high-ranking delegation, including the Foreign Minister, Li Zhaoxing, and the Minister of Trade, Bo Xilai.

Yang Yexin, President of CNOOC Kingboard Chemical Ltd., and Jiang Xinsheng, President of CNTIC, signed the contract jointly with Klaus Moll, member of the Executive Board of mg technologies ag responsible for Industrial Plant Engineering, and Andreas Schilcher, Executive Vice President of Lurgi AG. Zhang Guorong, President of Kingboard Holdings, Jiang Lichun, General Manager of CNOOC-Kingboard Ltd., and Wu Zhenfang, Assistant President of CNOOC, and Wang Zhongan, Director of Planning of CNOOC, also attended the signing ceremony.

Lurgi'sscope of contract comprises the provision of the license, the basic and detail engineering as well as the procurement of the main equipment and materials. The contract value is around US$ 90 million.

The client,
CNOOC-Kingboard Chemical Ltd., is a joint venture between the state-owned Chinese enterprise CNOOC (Chinese National Offshore Oil Corporation), Beijing and the Hong Kong based Kingboard Chemical Holdings Ltd. CNOOC, incorporated in 1982 and authorized by the Chinese State Council, took charge of the exploration and development of China'soffshore oil and natural gas resources and is developing into a first-class international energy company.

Established in 1988, Kingboard Chemical Holdings Limited is principally engaged in the manufacture of laminate and its related raw materials. Kingboard has been listed on the Hong Kong Stock Exchange. Kingboard also operates several chemical plants for the production of formaldehyde, using methanol as a feedstock.

Lurgi is the world market leader in processes for methanol production from natural gas and oilfield associated gases. Already now and in the very near future, between 60 and 70 percent of world methanol output are originating from Lurgi-built plants. Lurgi has developed specific proprietary technologies for the production of petrochemicals from natural and associated gases. The new
2,000-t/d plant will be erected in Dongfang, Hainan island, in the extreme south of China. The plant is to go on stream in 2007. It will be the largest so far in China.

2004/5/19 Reuters

Zhenhai Refining plans China's top ethylene plant

China's largest refinery, Zhenhai Refining and Chemical Co Ltd , plans to build the country's biggest petrochemical complex at 20 billion yuan ($2.4 billion) by 2010, Chinese industry officials said on Wednesday.

The proposal for the one-million-tonne-per-year ethylene project in Ningbo city in Zhejiang province is awaiting Beijing's approval and will be followed by a feasibility study.

"The area could be the most ideal place to build a large petrochemical complex," said a Beijing-based industry official close to the project.

China, Asia's largest importer of petrochemicals, imports 60 percent of the petrochemicals it uses. Sources say China plans to boost ethylene production capacity by more than 80 percent to top 10 million tonnes per year in the next five years.

China is already building petrochemical plants with international giants such as BP Plc, BASF AG and Royal Dutch/Shell , which are smaller in scale but each costing $2.7 billion to $4.3 billion.

The foreign partners hold roughly 50 percent equity in those joint-ventures.

Ningbo sits in the centre of East China's booming Yangtze River Delta and is the site of one of China's biggest oil terminal and storage facilities.

Officials said the project, which is cheaper than most of China's mega petrochemical ventures, will likely focus on domestic financing. However, they did not discount a joint venture with a foreign investor.

"The investment pattern in China's petrochemical sector is going to be different from the joint-venture projects such as SECCO and Yangzi-BASF, as the Chinese industry is now capable in both technology and management," a Beijing official said.

But he added the project might have to incorporate some foreign proprietary technology.

The Beijing officials said projects on the scale of Zhenhai's planned ethylene facility typically take three years to build.

日本経済新聞 2004/10/26

 大手3社の事業制限撤廃 国際競争力高める



  売上高 純利益 主な事業範囲
ペトロチヤイナ 1,795(21.4) 452(17.3) 陸上開発、精製、給油所
シノペツク 2,754(34.1) 161(50.6) 陸上開発、精製、給油所
中国海洋石油   160(13.0)  70(11.2) 海洋開発


October 19, 2004 Halliburton

Tianji Group selects KBR's technology for 450ton/day aniline plant in China

KBR has been awarded a contract by
Fangyuan Chemical Industry Development Co., Ltd. of the Tianji Group to provide a process technology license and basic engineering package for a 450 metric ton/day aniline plant located in Lucheng, Shanxi, China. 山西省

The facility will utilize DuPont aniline technology, which is available to KBR through a licensing alliance with DuPont, to produce high quality aniline product. KBR will also supply critical imported equipment for the project, as well as training and field services. KBR is the engineering and construction subsidiary of Halliburton (NYSE:HAL).

The selection of the DuPont/KBR process for the Tianji facility marks the first aniline technology from outside of China licensed to a Chinese company. All existing aniline plants in China are currently based on local Chinese-developed technology.

Aniline is a chemical intermediate
used to make MDI (methyl diphenyl diisocyanate), which is primarily used to create polyurethane foams. Rigid foams are utilized as insulation materials for construction, refrigeration and packing, while flexible foams are used as cushioning materials in furniture, bedding and transportation vehicles. China's demand for aniline is expected to grow more than 10 percent annually over the next five years.

"As demand for MDI products grows in China, the need for aniline naturally increases as well," said Tim Challand, vice president of technology at KBR. "Tianji selected the DuPont/KBR technology because this process offers them a lower cost of production and a higher quality product."

KBR is a global engineering, construction, technology and services company. Whether designing an LNG facility, serving as a defense industry contractor, or providing capital construction, KBR delivers world-class service and performance. KBR employs more than 60,000 people in 43 countries around the world.

Currently celebrating its 85th anniversary, Halliburton is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services and Engineering and Construction Groups. The company's World Wide Web site can be accessed at

China Chemical Information Net  2004/11/13

More Daqing millions for JV

Daqing Petroleum and Chemical Group (大慶)is investing 38 million yuan(HK$35.7 million) more to produce vinyl acetate in a joint venture project in Mudanjiang city in Heilongjiang province(黒龍江省牡丹江). The Mudanjiang Dongbei Chemical Engineering Company(牡丹江東北化工有限公司), a joint venture between Daqing Petroleum and Daqing Gaoxinqu (高新技) Qinglian Petroleum and Chemical, is planning the second phase of the Mudanjiang Plant upgrade.

Daqing Petroleum holds a 55 per cent stake in the joint venture and has already injected 50 million yuan in the first phase of the project. Phase II will begin in 2005 and, upon completion, the plant is expected to produce 45,000 tons per annum of vinyl acetate, an organic chemical used in paper making, construction and textile industries.

the mass production of Mudanjiang vinyl acetate plant will be commenced in the fourth quarter of 2004 and the annual production capacity is expected to reach 15,000 tonnes.
Upon the completion of the (phase 2) project, the production capacity of the vinyl acetate plant is expected to be further enhanced upto
45,000 tonnes per annum.

The demand for vinyl acetate far exceeds supply at the moment, with 1.2 million tons of annual demand, and only 700,000 tons of supply in China, according to Daqing Petroleum director Chan Yuk Foebe. ``There is a lot of potential for growth in the vinyl acetate industry and, furthermore, demand for vinyl acetate is expected to grow at a 10 per cent rate annually,'' Chan said. She said the company adopted a production method using calcium carbide, which helped lessen reliance on high crude oil prices, and also made it more competitive against companies that used the acetylene methodology. During 2003 and 2004, high crude oil prices saw the company's raw materials cost escalate. For the year ended last June 30, the company's net profit was HK$66.8 million, representing a decrease of 20.9 per cent over the previous financial year. The company's core business is lubricants and anti-corrosive coating. However, the lubricant business recorded a turnover increase of only 3 per cent to HK$236.7 million during the year. In comparison, anti-corrosive coating saw an increase of 26.8 per cent in turnover to HK$168.9 million.

Eyeing rising chemical demands in China, French oil giant, Total this month restructured its chemical business under a branch called Arkema, dedicated to the production of vinyl products, industrial chemicals and performance products. Arkema plans to invest US$200 to US$500 million (HK$1.56 billion to HK$3.9 billion) in China by 2010 to expand its chemical production. Of its 10 Asia plants, five are in China. Arkema's total investment in China has reached US$300 million, China Daily said.

Nov. 22, 2004 Eastman

Eastman Joint Venture Plant in China Starts Operations

Eastman Chemical Company (NYSE:EMN) announced today that Qilu 斎魯Eastman Specialty Chemical Ltd. (QESCL) has begun operations in Zibo, Shandong Province, People's Republic of China. QESCL is a joint venture between Sinopec Qilu Petrochemical Company and Eastman Chemical Ltd., a wholly owned subsidiary of Eastman Chemical Company.

The new plant produces
Texanol ester alcohol and TXIB plasticizer. The plant is able to meet the total demand of Eastman'scurrent customers for these products in China. Construction of the plant began in September 2003.

"The joint venture enhances Eastman's global capacity for Texanol ester alcohol and TXIB plasticizer. We expect a healthy growth in our market segment for these products and have an optimistic outlook for the future of the plant," said Damon Warmack, Asia Pacific region president for the company's Eastman Division.

Eastman expects the synergy established with Sinopec Qilu will provide long-term business growth opportunities in China, and the Asia Pacific region in general, with a stable and efficient supply of raw material from its joint venture partner.

The plant is identical, both in design and operation process, with our plant in Singapore and is tied into Eastman's global operation,said Brian Yoon, general manager, QESCL. That means our customers will get the same consistent, high-quality products that they have come to expect from Eastman.

Texanol ester alcohol is the leading coalescing aid used in premium quality architectural paints around the world. It is produced within Eastman's coatings, adhesives, special polymers and inks segment. TXIB plasticizer is a primary plasticizer for vinyl, urethanes and other polymers for the production of consumer goods such as flooring, wallpaper, artificial leather and disposable medical examination gloves. It is produced within the company'sperformance chemicals and intermediates segment.

Chen Qi from Sinopec said,
I am confident of the success of this first joint venture of Sinopec with Eastman, as it'sbetween two major players and will be a 'win-win' proposition for both parties. We expect more in depth cooperation in the future.

This investment is Eastman's second major project in China in the specialty chemicals markets. It follows the establishment of Nanjing Yangtzi Eastman Chemical Ltd., a 50-50 joint venture with Yangtzi Petrochemical Industrial Corporation established in 1998 to manufacture Eastotac hydrocarbon tackifying resin for adhesives.

Speaking at the grand opening ceremony of the Qilu plant, Han Yuqun, governor of Shandong Province, said,
The Qilu Chemical Industrial Zone has established itself as the third largest chemical industry zone in China. Its growth is playing a key role in the economic development in Zibo and Shandong.QESCL is the first large Sino-foreign joint venture to enter the Zone, and it is expected to generate a positive and significant impact on the development of Zibo and Shandong.

About Eastman Chemical Company
Eastman Chemical Company, headquartered in Kingsport, Tenn., manufactures and markets chemicals, fibers and plastics worldwide. The company employs approximately 12,000 people and had 2003 sales of US$5.8 billion.

About Eastman in China
Eastman began providing products to China in 1979 and is now playing a leading role as a key supplier for various industries in China, including coatings, plastics, textile, cigarette and adhesives. Visit for more information about the company in China.

About Sinopec Qilu Petrochemical Company
Sinopec Qilu Petrochemical Corporation (QPC), established in 1966, is a large-scale petrochemical enterprise affiliated with China Petrochemical Corporation (Sinopec). With nearly 40 years development, QPC owns China'slargest production base for chlorine/soda and oxo; is now a significant domestic processing base for high-sulfur and acid crude oil; and runs one of the largest ethylene facilities in China, with a capacity of 720,000 tons a year.