Methanol Facility Starts Production in Erdos City, Inner Mongolia Autonomous Region

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Researched by Industrial Info Resources (Sugar Land, Texas) -- A one million-ton per year methanol facility went into production in Erdos City, Inner Mongolia Autonomous Region, Northwest China in July. With a total investment of $170 million, this facility, manufacturing methanol out of natural gas, started construction in September 2004. By July 2007, 400,000 tons of methanol had been produced.

This facility is invested by an Erdos-based Sino-U.S. joint venture, Inner Mongolian Boyuan Unichem International Company, Limited, whose registered capital stands at $65 million. Thirty percent of the shares are held by Erdos-based Yuanxing Natural Alkali Company, Limited, 30% by Erdos-based Boyuan Investment Management Company, Limited, and 40% by Sigma Investment Holdings LLC.

With abundant natural gas reserve, Erdos is China's largest methanol manufacturing base. By 2010, Erdos' methanol production capacity is expected to exceed 10 million tons. So far, Erdos has five “above-one million-ton per year” methanol production facilities under construction. Apart from the one mentioned above, the other four are as follows:

A one million-ton per year methanol production facility invested by Erdos-based Huajian Energy Chemical Industrial Company, Limited. It attracted a total investment of $395 million and its construction is divided into two parts. The first part produced 400,000 tons per year and started in August 2005, and the second part produced 600,000 tons per year and started at the beginning of 2007.

Erdos-based Rongcheng Energy Chemical Industrial Company, Limited also funded a one million-ton per year methanol production facility in Erdos, which also is expected to produce 5 million tons of semi-coke per year. Construction for this project is divided into three parts. The first part started July 7th with an investment of $130 million, which is expected to produce one million tons of semi-coke and 200,000 tons of methanol per year.

Erdos-based Guangdong Xiangjiang Huayan Resource Company, Limited invested $595 million to build a one million-ton per year methanol production facility. The 200,000-ton part of the whole facility started construction in May 2006 with an investment of $130 million. It is expected to go into production in 2008.

Shandong Jiudai Energy Company, Limited (Linqi City, Shandong Province, East China) put $740 million in 2006 on a 150 million-ton per year methanol facility in Erdos, which is also expected to produce one million tons of DME (Dimethyl-Ether) per year.

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