Sinopec Yizheng to invest RMB 1.58 bln in chemical project

Oct. 16, 2009 (China Knowledge) - Sinopec Yizheng Chemical Fibre Co Ltd<600871><1033>, a subsidiary of Sinopec Group, today announced that it plans to invest RMB 1.58 billion in a chemical project, sources reported.

Forty percent of the total investment will be funded by the company's internal resources, and the remaining capital will be derived from bank loans.

The chemical firm, which is principally engaged in the development of polyester chips and fibers, intends to complete the project within 26 months and put it into operation at the end of 2011. The project will have an annual output of 50,000 tons of 1,4-butanediol, 35,800 tons of tetrahydrofuran and 4,900 tons of gamma-Butyrolactone.

On Oct. 13, Sinopec Yizheng Chemical Fibre predicted that it will show a profit for the first three quarters of this year, whereas it suffered losses of RMB 247.25 million in the corresponding period of last year.