| I.
Industrial Policy |
| |
| New Regulation
on Narcotic Chemicals (Last update: 12/09/2000) |
| State Economic & Trade
Committee, Ministry of Public Security and State Commercial & Administrative
Bureau issue a regulation on chemicals that are easy to make narcotics.
According to this regulation, all the enterprises that have not been recorded
by public security department can not produce or distribute the chemicals,
which can be used to make heroin, ice, cocain. These chemicals include ephedrine,
3,4-methylene-diphenyl-2-acetone, 1-phenyl-2-acetone,phenyl acetic acid,
heliotropin, sassafrol, isosassafrol, acetic anhydride. All these chemicals
can not be produced/distributed by enterprises without government approval.
Any manufacturer of the above mentioned chemicals must be filed by public
security department before 15th Dec 2000. Any individual is not allowed
to do business of these chemicals. (Source: China Chemical Industry News)
|
| |
| Government
Layout Principle for Price of Ethylene (Last update: 11/20/2000) |
| State Planning Committee
issued notice recently as to the principle for setting the price of ethylene,
in order to solve the problem between the suppliers and consumers. The price
is negotiating between seller and buyers. The government will no longer
to set price for enterprises later. The suppliers and consumers of ethylene
set the price on base of international figure. The formula for price is:
Current price=price in last month (international) x foreign exchange x (1+VAT)
x (1+changing index). The international price in last month refers to average
price of FOB Korea and CFR Southeast, published by ICIS-LOR. The changing
index means: if the international ethylene price is USD350-550/MT, the changing
index is 0;the changing index will increase 1.2% on the every decrement
of 10USD, if the international price is lower than USD350/MT; the changing
price will decrease 1.2% on the every increment of 10USD, if the international
price is higher than USD550/MT. The price of ethylene will update every
month. This method will be executed from the date of this notice and will
be carried out for one year for trial. (Source: China Chemical Industry
News) |
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| II.
News Collection |
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| 50,000MT/year
Oxlic Acid (Last update: 12/25/2000) |
| The 3rd phase enlargement
of oxalic acid, invested jointly by Fujian Shaowu Fine Chemical Factory
and Zhangzhou Oxalic Acid Factory, has been finished. The production capacity
of oxalic acid of this project is 50,000MT/year, the largest one in China.
(Source: Shanghai Chemical Industry) |
| |
| Zhuhai PTA Project
Activated (Last update: 12/25/2000) |
| The project of 350,000MT/year
PTA is activated in Zhuahi. The construction began. This project is estimated
to be finished by 2002. The future capacity of PTA in this factory is designed
at 1 million MT/year. This project is invested by BP-Amoco, Zhuhai Fuhua
Group and China Fiber Corporation. The total investment is USD360 million.
(Source: Shanghai Chemical Industry) |
| |
| Eastman Buys Funing
Chem. (Last update: 12/25/2000) |
| The subsidiary
of Eastman, Fente Co., bought 90% stock of Funing Organic Factory. The newly
formed JV is called Jiangsu Fente Chemical (International) Co. Ltd. The
registered capital of this JV is USD10.92 million. It is expected that the
annual sales value of this JV will be RMB300 million. The main products
in this JV are oleic acid, dimer acid and polyamide resin. (Source: Shanghai
Chemical Industry) |
| |
| DSD Project in
Huayu Passes Environmental Test (Last update: 12/25/2000) |
| The environmental facilities
in CNCC Huayu Chemical Factory, a facility of RMB17 million, has passed
the environmental test from Hebei Province. So far there is no waste let
off in this factory. Huayu uses two technologies in disposing the waste,
one technology from CAS and another from Tianjin University. (Source: Shanghai
Chemical Industry) |
| |
| Pentane Foaming
Agent in Yangze (Last update: 12/18/2000) |
| Yangze Petrochemical
Corp has produced pentane foaming agent to replace Freon. The agent has
been used in the production line of 400,000MT/year foaming PS and the result
is successful. (Source: China Chemical News) |
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| Yangze BASF
Set up (Last update: 12/18/2000) |
| So far the largest
JV in petrochemical industry, Yangze BASF Co. Ltd. is announced to set up
in Nanjing. BASF and Yangze Petrochemical Corp holds 50% and 50% shares
of the JV. The total investment for the JV is USD2.6 billion. The JV will
work around the 600,000MT/year ethylene project, with 8 production lines
of world scale to produce 1.7 million MT/year of petrochemical products.
A large part of the products are not available in China at the moment. It
is expected that the commercial production of the JV will begin in 2004.
(Source: China Chemical News) |
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| Large Demand for
PTA in China (Last update: 12/18/2000) |
| News from China Chemical-Fiber
Association shows that China will encourage more oversea companies to invest
in PTA project. So far the total production capacity of PTA in China is
2 million MT/year. In 1999 China imported 1.54 million MT of PTA and it
is estimated to have imported 2.40 million MT of PTA in 2000. Even if all
the existing Chinese factories enlarge the production capacity of PTA, they
still can not meet the ever increasing demand. At present the large PTA
producers in China include Tianjin Petrochemical (250,000MT/year), Luoyang
Petrochemical (225,000MT/year), Yizhdeng Petrochemical, Shanghai Petrochemical
and Yangzi Petrochemical. The JV of PTA projects include BP in Zhuhai (450,000MT/year)
and Diren Petrochemical in Fujian (450,000MT/year). (Source: China Chemical
Industry News) |
| |
| Methanol
Enlargement in Shaanxi Yulin (Last update: 12/10/2000) |
| Shaanxi Yulin Natural
Gas Co. Ltd. invest RMB3 million to enlarge the methanol production line
during the overhaul. Now the production capacity of methanol in this factory
has reached to 120,000MT/year. They are one of the largest methanol producers
in China. (Source: Shanghai Chemical Industry) |
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| Continuous Production
Method of DBP (Last update: 12/04/2000) |
| The first production
line, by continuous method, of dibutylphthalate (DBP) has been run for 3
months in Shandong Qilu Plasticizer Co. Ltd. Generally in the world, DBP
is synthesized by non-acidicity rout, during which butanol reacts with catalyst
to form butyl ester, the side reaction results in low yield and bad quality
of DBP. Thus most manufacturers use batch production method to control the
content of butyl ester. From July 2000, the researcher in Qilu Plasticizer
Co.have been improving the existing production line of 20,000MT/year DBP
(by batch method) and changed to continuous method thus solve the problem
arisen from butyl ester. In the same time they enlarged the production capacity
of DBP to 30,000MT/year. (Source: China Chemical Industry News) |
| |
| 16,000MT/year
MDI Project in Shanghai Approved (Last update: Dec 2000) |
| The project of 160,000MT/year
of MDI and 130,000MT/year of TDI in Shanghai Chemical District have been
approved by central government. It is estimated that these two projects
will be finished by the year 2003 and the commercial production will begin
in 2004. In the future, the production line of 30,000MT/year HDI and 10,000MT/year
HDI derivatives will be constructed in Shanghai Chemical District. The MDI
& TDI projects are invested by Shanghai Huayi (Group) Co. Ltd., Shanghai
Tianyuan (Group) Co. Ltd., Shanghai Gaoqiao Petrochemical Co. Ltd, Shanghai
Chemical Development Co. Ltd., Sinopec and BASF, Huntsman-ICI, Nippon Polyurethane.
(Source: Polyurethane News) |
| |
| China
Launches to Produce MDI (Last update: Dec 2000) |
| Shandong Yantai Wanhua
Group cooperates with Qingdao Chemical University to do research on the
production of MDI, a crucial raw material for the production of polyurethane.
The result is successful. So far China becomes the fifth countries in the
world to grasp the production technology of MDI. The rest technology holder
include Germany, British, USA and Japan. It is expected that this technology
will increase profit of RMB70 million per year for China. (Source: Polyurethane
News) |
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| 12,000MT/year
Melamine Project in Shandong (Last update: Dec 2000) |
| The 12,000MT/year project
of melamine in Shandong Haihua Kuixing Co. Ltd. has been finished. The commercial
production began in the end of 2000. The total investment for this project
is RMB134 million. (Source: Chemical Techno-Economics) |
| |
| MCD
Facilities in BASF Shanghai(Last update: 11/29/2000) |
| The advanced production
line of metal complex dyestuff (MCD) has been built in BASF Shanghai. This
facility is an important part of the dyestuff department of BASF. (Source:
China Chemical Industry News) |
| |
| Cyclohexanone
in Yingshan Chemical Co. (Last update: 11/27/2000) |
| Baling Petrochemical
Yingshan Chemical Company enlarges the production capacity of cyclohexanone
from 150Mt/day to 195Mt/day by technical improvement. Now they can sufficiently
supply the cyclohexanone to the production of caprolactam. At present the
production capacity of caprolactam in Yingshan Chemical Co. is 70,000MT/year.
(Source: China Chemical Industry News) |
| |
| Tianji
Group Starts Commercial Production of Benzotriazole (Last update: 11/27/2000) |
| Shanxi Tianji Group
invested RMB1 million to set up a production line of benzotriazole with
capacity of 50MT/year. Apart from captive consumption, Tianji Group will
sell most of this product to northern China, northeast China and northwest
China. Part of the product will be exported. (Source: China Chemical Industry
News) |
| |
| Cangzhou
Dahua TDI Technical Reform Succeeded (Last update: 11/27/2000) |
| The Technical improvement
on TDI facilities in Cangzhou Dahua finished recently. Experts comment that
the TDI facilities after improvement is qualifiable.TDI is the raw material
for polyurethane. It is estimated that the demand for TDI in China is about
240,000MT/year. (Source: International Trade News) |
| |
| A First
Acrylate Manufacturer in Northwest China (Last update: 11/25/2000) |
| A first production
line of acrylate in northwest China has been built in Xi'an Tianyun Industrial
Co. Ltd.. The total capacity is 3,500MT/year. In the past, the acrylate
products are produced mainly in Beijing Dongfang Chemical Factory. (Source:
China Chemical Industry News) |
| |
| 6,000MT/year
Ethanolamine Production Line Put into Use (Last update: 11/22/2000) |
| Maoming Petrochemical
Corp Shihua Company has set up a ethanolamine production line with capacity
of 6,000MT/year. The total investment is RMB17 millions. The production
technology comes from Zhejiang University. They use ethylene oxide and liquid
ammonia as raw material for ethanolamine series. It is reported that Shihua
company will further invest about RMB28 million to enlarge the production
capacity of ethanolamine to 18,000MT/year in the future. (Source: China
Chemical Industry News) |
| |
| Butadiene-styrene-pyridine
Project in Nantong (Last update: 11/20/2000) |
| Nantong Economic Technology
Development Zone and Shenhua Chemical Industry Co. Ltd. signed an agreement
recently to build a production line of butadiene-styrene-pyridine (BTP)
with capacity of 20,000MT/year. The total investment is USD15 million. The
construction will be carried out in two phases, with first phase to build
a production line of 10,000MT/year. Shenhua Chemical Industry Co. Ltd. produces
butadiene-styrene latex, with capacity of 100,000MT/year. Another raw material
for BTP, pyridine, will be supplied by Ruili Chemical Co. Ltd., who is the
joint venture of Nantong Acetic Acid Factory and a USA company. (Source:
China Chemical News) |
| |
| Yuanping
Chemical Share More Oxalic Acid Market in China (Last update: 11/20/2000) |
| Yuanping Chemical Factory
produce over 30 products. In recent years they have been focusing on oxalic
acid, formic acid, sodium formate and sodium sulphate. In 1997 the production
capacity of oxalic acid is 10,000MT/year, occupying 15% of Chinese market.
They are now planning to enlarge the capacity of oxalic acid to 40,000MT/Year,
sharing about 80% of the future market. (Source: China Chemical Industry
News) |
| |
| The
Largest Anthraquinone Oxide Project Started (Last update: 11/16/2000) |
| The largest anthrquinone
oxide project was signed in Jining. The investors include Yunkuang Group,
Jining Coal Chemical Co. and BEFS of France, who hold shares of 40%, 31%
and 29%, respectively. The total investment is RMB259.4 million and total
processing capacity of anthraquinone oil is 34,000MT/year. The designed
production capacity of anthraquinone oxide is 2,000MT/Year and the capacity
of carbazole is 1,200MT/year, both of which are derivatives of coal tar
and are raw materials for pigment,dyestuff, papermaking chemical, etc. Now
about 80% of the construction has been finished. It is expected that the
commercial production will begin in the end of 2002. About 70% of the products
will be exported through BEFS of France. Also it is estimated that the sales
turnover will be RMB130 million. (Source: China Chemical Industry News) |
| |
| 1-Amino-anthraquinone
by Nitroammonolysis Method (Last update: 11/13/2000) |
| Nanjing Xinda Chemical
Co. Ltd. got success in producing 1-amino anthraquinone by ammonolysis method.
In the past, 1-amino anthraquinone is made first by nitration method, then
by reduction with sodium sulphide. The COD value and sulphur content is
high in the waste water. But by using the new method, the content of nitrosamine
in the waste water is less then 2 ppm and the COD value is 150-200mg/L.
(Source: China Chemical Information) |
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| The
largest Joint venture in China (Last update: October 2000) |
|
The largest joint
venture project in China, Nanhai Petroleum Project, was signed in Beijing
on 28th Oct 2000. The total investment for this project is USD4 billion.
The JV will locates in Guangdong Huizhou Dayawan Economic&Technology Zone.
The Nanhai Petroleum
Project includes: 8 million Mt/year of crude oil processing, Production
of ethylene (800,000Mt/year), polyethylene (450,000Mt/year), polypropylene
(240,000Mt/year), styrene (560,000Mt/year), epoxypropane (45,000Mt/year),
polyalcohol (195,000Mt/year), propylene glycol (60,000Mt/year), glycol
(320,000Mt/year), butadiene (165,000Mt/year) and high quality gasoline
(900,000Mt/year).
The investor of Nanhai
project include Shell Nanhai Co. Ltd. (50%), China Ocean Petroleum Corp
(40%), Guangdong Investment Corp(5%), Merchant Bureau (HK) (5%). It is
predicted that the Nanhai Petroleum Project will offer 1,400 direct working
position and over 1.4 million indirect working position to the local city.
|
| |
| Huayu
Brand DSD (Last update: October 2000) |
| CNCCC Huayu Chemical
Factory is now the famous factory in the world to produce DSD. Now the export
of DSD from Huayu Factory accounts to about 70% of the total export in China.
The annual profit in Huayu Factory is over RMB20 millions. The present production
capacity of DSD is over 1,000Mt/year. It is reported that the quality of
DSD from Huayu is higher than that of from a German company (Note: Maybe
BASF). (Source: China Chemical Industry News) |
| |
| Dimethyl
Carbonate Enlargement in Tangshan Finished (Last update: Sept 2000)
|
| Tangshan Chaoyang Chemical
General Factory has finished the enlargement project of dimethyl carbonate
recently. Now the production capacity of dimethyl carbonate is 4,000Mt/year.
It is reported that Tangshan Chaoyang wants to further enlarge the capacity
to 6,000Mt/year in the future. Dimethyl carbonate is an important intermediate
in chemical industry and pharmaceutical industry. (Source: China Chemical
Industry News) |
| |
| A
1,000MT/year Production Line of Alkenyl Succinyl Anhydride(ASA) (Last
update: Oct 2000) |
| Recently the first
production line of alkenyl succinyl anhydride(ASA) with capacity of 1,000MT/year
went into commercial production in Fushun Petrochemical Company No.5 Branch.
(Source: Chemical Technology Market) |
| |
| China
Speeds up the Cooperation with Big Ones (Last update: 09/27/2000) |
| At present, the total
production capacity of ethylene in China is 4.4 million MT/year. In the
next 5-6 years China will set up 6 joint ventures with the big ones in the
world to enlarge the capacity of ethylene by 4.3 million MT/year. It is
estimated that the total investment for the new projects will be USD18 billion,
50% to 50% for Chinese part and oversea investors. It is disclosed that
5 of JV projects will locate in Eastern coast line. Some JV projects include:1)
650,000Mt/year of ethylene (in Jiangsu)with BASF.Total investment is USD2.65
billions. It is expected to finish in 2004. 2) The enlargement of 350,000Mt/year
ethylene project, on base of the present level (650,000Mt/year), with BP-Amoco.
It is expected to finish in 2005. 3) 800,000Mt/year ethylene project (in
Huizhou) with Shell. Total investment is USD4.3 billions. This project has
been approved. It is expected to finished in 2005.4)Other projects include
the cooperation with Exxon Mobil (in Fujian), Dow Chemical (in Tianjin)
and Philip (in Lanzhou). (Source: China Chemical Industry News) |
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| Development
of Petroleum and Chemical Industry During the Ninth-Five-Year Plan (last
update: 09/26/2000) |
| During the Ninth-Five-Year
Plan the petroleum and chemical industry have been growing in both volume
and value.In 1999 the total production value amounted to RMB 554.84 billion
which increased more than 30% over that in 1995, and the net profit amounted
to RMB30.93 billion, accounting for more 30% of the total profit from all
the state-owned and state-holding enterprises. By the end of 1999 the capacity
of main chemicals had been greatly promoted:ethylene capacity was 4.346
millionMt/year, the fifth in the world; the processing capacity of petroleum
was 270 millionMt/year, the third in the world; the processing ability of
petroleum is 176 millionMt/year; the production of the three main kind of
oil(gasline,diesel oil,kerocene) is 105 millionMt/year. China was the sixth
in the world in production capacity of synthetic resin.(Source: China Chemical
Industry News) |
| |
| A Large
Melamine Factory Established in Shandong (Last update: 09/25/200) |
| Shandong Haihua Kuixing
Chemical Co.Ltd has enlarged the production capacity of melamine to 30,000MT/year,
costing over RMB134 million. The equipment is designed and installed by
themselves. They are using low pressure method. So far they claimed to be
the biggest melamine producers in China. (Source: China Chemical Industry
News) |
| |
| Largest
Production Line of Furan (Last update: July 2000) |
| The 2,000Mt/year production
line of furan has been built in Zhejiang Fanghua Group Chemical Factory.
They use furfural as raw material and adopt decarbonization technology.
The purity of the product can reach 99%. (Source: Fine and Special Chemicals)
|
| |
| Diphenol
Derivatives Production Line in Jiangsu (Last update: July 2000) |
| The largest production
line of diphenol, methyl catechol, was built in Jiangsu Wuxi Jade Fine Chemical
Co. Ltd. The production capacity is 400Mt/year. The methyl catechol is used
to make flavor, fragrance, food additive and pharmaceutical intermediate.
This company is a joint venture of Rodia of France and a Japanese company.
So far Rodia has 9 joint ventures and 3 wholly owned ventures in China.
The total investment of Rodia in China is about USD200 millions. (Source:
Fine and Special Chemical) |
| |
| 10,000Mt/year
Chloroacetic by Acetic Acid Anhydride Method (Last update: June 2000)
|
| Wuxi Chemical Group
is constructing another production line of chloroacetic acid (5,000Mt/year)
on base of the current line (5,000Mt/year). The total production capacity
of choloracetic acid will reach to 10,000Mt/year after the finish of construction
by end of this year. Wuxi Chemical Group will use acetic anhydride method
instead of sulfur method. It is reported that Wuxi Chemical Group invested
about RMB5 millions for the construction. (Source: China Petroleum and Chemical)
|
| |
| 18,000Mt/Year
Glyoxal in Shanghai (Last update: July 2000) |
| Shanghai Sulfuric Acid
Factory developed glyoxal in 1998. In 1999 they build a production line
of glyoxal with 8,000Mt/year. In 2000, they build another production of
glyoxal (10,000Mt/year). So far the total production capacity in Shanghai
Sulfuric Acid Factory is 18,000Mt/year, the largest one in Asia. In the
past, the Chinese market of glyoxal is occupied by Germany, Japan. (Source:
Chemical Technology Market) |
| |
| t-Butyl
Amine in Shandong (Last update:June 2000) |
| Shandong Heze Zhengxing
Economic & Trading Company has built a production line of t-butylamine with
capacity of 2,000Mt/year. In the past China relies on the import of this
product. Now it is expected that the Shandong Factory can satisfy partly
the domestic demand (about 10,000Mt/year). (Source: Chemical Technology
Market) |