Glycol plant in Inner Mongolia to begin production in Sep

Aug. 3, 2009 (China Knowledge) - GEM, an ethylene glycol producer based in Tongliao, Inner Mongolia Autonomous Region, plans to complete the first stage of a glycol project and will begin glycol production in September this year, sources reported.

GEM, which was set up by the Chinese Academy of Sciences, Danhua Chemical Technology Co Ltd<600844><900921> and a Shanghai-based firm, have invested RMB 1.68 billion in the project's first stage so far. The plant will produce about 40,000 tons of glycol this year, bringing RMB 300 million in sales revenue. It will cost an estimated RMB 2.1 billion in total and will have an annual glycol output of 200,000 tons.

On Jul. 13, Danhua Chemical Technology announced plans to issue 46.89 million shares for RMB 800 million or RMB 17.06 per share to fund the second stage of the glycol project. When the second stage of the project is complete, the plant will produce 400,000 tons of glycol a year.

Upon the completion of the glycol project, which will cost a total of RMB 12 billion and comprise three stages, the plant will produce an estimated 1.2 million tons of glycol a year and realize an estimated RMB 15 billion in sales revenue, sources reported.