China Blue Chemical Builds New Chemical Plants

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Researched by Industrial Info Resources (Sugar Land, Texas). China Blue Chemical (Dongfang City, Hainan Province, South China), one of China’s largest nitrogenous fertilizer producers, plans to build a large-scale methanol production plant with an annual production capacity of 1.13 million tons in Hainan Province, South China.

In addition, China Blue Chemical also plans to build a polyformaldehyde production base with an annual production capacity of 60,000 tons in Inner Mongolia Autonomous Region, Northeast China. Once built at the end of 2008, it will become China’s largest single-set polyformaldehyde production plant.

China Blue Chemical is a core subsidiary of China National Offshore Oil Corporation (CNOOC)(Beijing), China's third largest petroleum company. It was founded in 2000 and focuses on downstream oil industry including the production of urea, methanol, compound fertilizer and other high value-added compound chemical products. Its sales network now covers 20 provinces and regions out of China’s total of 32 provinces and regions.

In terms of urea production, China Blue Chemical operates three large-scale production plants with a production capacity of 1.84 million tons. Two of them are located in Hainan Province with an annual designed capacity of 300,000 tons of ammonia and 520,000 tons of urea at Fudao Phase I site and an annual designed capacity of 450,000 tons of ammonia and 800,000 tons of urea at Fudao Phase II site respectively. The third is Tianye Chemical Plant, located in Inner Mongolia with an annual designed capacity of 520,000 tones of traditional prill urea.

With respect to methanol production, Tianye Chemical Plant (Inner Mongolia) has a base of annual designed capacity of 200,000 tons of methanol. Another methanol production plant is located in Hainan with a production capacity of 600,000 tons. The latter is built by China Blue Jiantao, a joint-venture in which China Blue Chemical holds 60% of the stakes while the rest of the stakes go to Hong Kong Jiantao Group.

Most of China Blue Chemical’s urea and methanol products are sold in domestic China while a small share goes to Southeast Asia and North America.

China Blue Chemical set up a "strategic partnership" with Yara International ASA (Oslo, Norway), the world’s largest fertilizer producer, in 2006 to explore growth opportunities in China.

China Blue Chemical is listed in Hong Kong Stock Exchange. The stock number is 3983. Its earnings in 2006 reached RMB 3.46 billion registering a 46% year-on-year increase, with a net income reaching RMB 1.64 billion registering a 74% year-on-year increase.

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