China Datang Signs Agreement for Construction of Power Project in Dandong

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Datang Liaoning Branch Company (Shenyang, Liaoning), a regional subsidiary of China Datang Corporation (Beijing), signed a cooperative framework agreement with Liaoning Shougang Chemical Company Limited (Dandong, Liaoning), a subsidiary of Shougang Group Company Limited (Beijing), regarding the construction of the Fengcheng cogeneration project. The agreement was signed at the Fengcheng Investment Fair, which was held October 10, 2010. L.V. Jianmin, the general manager of Datang Liaoning Branch and other leaders and representatives attended the signing ceremony.

The signing of the agreement will help ensure the sales of the industrial steam and electricity when the combined heat and power project is put into operation. This will help ensure that construction of the project will go through, China Datang Corporation announced on October 11.

Fengcheng is a county-level city under the jurisdiction of Dandong City in China's Liaoning province, which is rich in mineral resources, especially boron. The reserve of boron in Fengcheng accounts for 63% of China's total Boron reserves. Shougang Chemical Company plans to invest $1.5 billion for a boron and iron resources comprehensive utilization base in Fengcheng. By taking this opportunity, Datang Liaoning Branch signed the development agreement with the municipal government of Fengcheng for the cogeneration project in November 2009.

According to the preliminary design, the project initially will be furnished with two 350-megawatt (MW) cogeneration units, requiring a total investment of about $420 million. The major purpose of the project is to supply the required industrial steam and electricity to the proposed boron and iron resources comprehensive utilization base in Fengcheng.

According to the schedule, the project will begin operations in 2012. Upon completion, the project will not only promote China Datang Corporation's strength and competitive force in Liaoning, but also will help improve the urban environment, ensuring the power supply for regional economic development and promoting the development of related industries in Fengcheng.

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