China Salt Begins Construction of $1.66 Billion Chemical Industry Base in Hefei

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Researched by Industrial Info Resources (Sugar Land, Texas)--Construction of China National Salt Industry Corporation's (China Salt) (Beijing) Hefei chemical industry base officially kicked off on August 18. On the same day, China Salt Anhui Red Sifang Company Limited (China Salt Red Sifang) (Hefei, Anhui) also was unveiled in Hefei, the capital city of central China's Anhui province, China Salt announced August 19.

China Salt's Hefei chemical industry base is one of the key projects listed in the industry stimulation plan for Anhui province. The project has a total planned investment of $1.66 billion. According to the schedule, the project will be built in two phases and will be completed in five years. Upon completion, the project will have an annual production capacity of 1 million tons of pure alkali; 600,000 tons of synthetic ammonium; 1 million tons of compound fertilizer; 300,000 tons of urea; 60,000 tons of pesticide; with related auxiliary and support facilities. Of which, Phase I will be completed in three years, with the establishment of an estimated investment of $892 million and a diversified chemical industry base comprised of salt chemical, agricultural chemical, and fine chemical; and Phase II will begin construction in 2012, with an estimated investment of $774 million.

The newly established China Salt Red Sifang, a joint venture of China Salt (51%) and the local government that is based on the former Anhui Red Sifang Company Limited (Hefei, Anhui), will be responsible for the construction and operation of the chemical industry base. "The establishment of China Salt Red Sifang marks the successful re-organization of the chemical industry in Hefei," said China Salt in its announcement.

On October 24, 2008, China Salt, Anhui Provincial Salt Industry Corporation (ASIC) (Hefei, Anhui), and the Municipal Government of Hefei signed the Cooperation Agreement Regarding the Re-organization and Relocation of Chemical Enterprises in Hefei, which specified that the parties will jointly re-organize the chemical industry in Hefei, and be responsible for the relocation of chemical enterprises and the construction of the new chemical base.

In the end of October 2008, China Salt, ASIC, Hefei Sifang Chemical Industry Group Company Limited (Hefei, Anhui), and Hefei Municipal Industry Investment Holding Company Limited (HIIC) (Hefei, Anhui) signed the Transfer Agreement Regarding Shares of Anhui Red Sifang Company Limited and Other Related Assets. In March 2009, China Salt received final approval from the State Assets Supervision and Administration Commission for the re-organization.

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