Jilin Ammonia Plant Supplies Demand Driven Chinese Chemical Market

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, TX). The Jilin Chemical Group Corporation (NYSE:JCC) (Jilin City, China) is bringing a $144 million ammonia plant on stream in Jilin City, located in northeastern China close to the North Korean border. Production capacity of the plant is rated at 350,000 tons per annum or approximately 1,000 tons per day.

The engineering, procurement, and construction (EPC) contract was awarded to Linde Impianti Italia SpA, the Italian subsidiary of the German process contracting group.

The plant was designed with the Linde Ammonia Concept (LAC). Oxygen generation, Rectisol acid-gas removal, and liquid nitrogen wash process technology is being supplied by the contractor. Oil gasification and ammonia casale synthesis loop technology is supplied by Texaco.

The ammonia market in China has better growth prospects than in much of the rest of the world. Global markets are suffering from price falls in an oversupplied market, but the Chinese market is protected to some extent by tariff barriers from world price falls. Instead, China's problem is not being able to keep pace with domestic demand.

Founded in the 1950's, the Jilin Chemical Group is one of the biggest basic chemicals producers in China. In 1994 the state owned company was re-founded as a private company. Its five major product categories are petroleum products, petrochemical and organic chemicals, dyestuffs and dye intermediates, synthetic rubbers, and chemical fertilizers. The petrochemical and organic chemical sector is driving strong growth in volume sales and the fertilizer sector has good growth by world standards. The company is listed on the Hong Kong, Shenzen and New York stock exchanges.