China BlueChemical to Invest $5.3 Billion in Coal-to-Chemicals Projects

---

Researched by Industrial Info Resources (Sugar Land, Texas) -- China BlueChemical, Limited (Dongfang City, Hainan Province) plans to invest $5.3 billion in Jincheng City of Shanxi Province to develop coal-to-chemicals projects, mainly chemical fertilizers.

Yang Yexin, CEO of China BlueChemical, disclosed the news to the press during the company’s mid-term performance report meeting in Hong Kong, where lies its second headquarters.

China BlueChemical has signed a cooperation memorandum with Jincheng City after finishing some fieldwork for making a detailed plan. The two sides will establish a company to manage all the work.

According to the sketch plan, China BlueChemical will build a 600,000-ton per annum synthetic ammonia unit and a one million-ton per annum macro-aggregate urea unit in the first phase, occupying 200 acres. Two more phases will follow.

China BlueChemical will use coal as the raw material in the project, instead of natural gas used in its previous projects, in order to secure its chemical fertilizer production, in case the natural gas supply should drop.

China BlueChemical, Limited is a core subsidiary of China National Offshore Oil Corporation (NYSE:CEO ) (Beijing, China), China's third largest petroleum company. The company's businesses cover advanced processing of natural gas including developing, manufacturing and selling of chemical fertilizers and chemical products.

China BlueChemical is among the largest in production volume and most energy efficient nitrogenous fertilizer producers in China, whose principal businesses are manufacturing, developing and selling urea and high value-added synthetic chemical products with natural gas as the raw material. China BlueChemical possesses enormous production capacity, advanced manufacturing technology, and an extensive sales network that covers 20 provinces in China.

Shanxi Province has China’s largest coal deposit, producing more than 300 million tons of coal, accounting for one-fourth of China's total coal production.

Jincheng City is located in the southeastern corner of Shanxi. Established as a city 20 years ago, Jincheng's economy is able to develop based on its rich natural resources and small smelting factories, mines and fertilizer factories.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.