Qingdao Lidong Chemical Company Begins Operations in Shandong Province

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Researched by Industrial Info Resources (Sugar Land, Texas). Qingdao Lidong Chemical Company (Qingdao city, Shandong province, East China), in which South Korean GS Caltex (Seoul, Korea), Oman Oil Company S.A.O.C (OOC) and Qingdao Red Star Organic Chemical Company (Qingdao city, Shandong province) hold stakes, went into operation officially on May 22. Celebration was held in Qingdao Economic and Technological Development Zone where the company is located.

Qingdao Lidong Chemical Company was founded in December 2003 with a total investment of nearly $600 million and covering an area of 1.11 million square meters. The company is equipped with a designed annual production capacity of over 1 million tons of aromatic hydrocarbon products and the annual sales volume is expected to exceed $1 billion.

Twenty six million dollars of the total investment, about 4.6%, goes to environmental protection. The Aromatic Hydrocarbon project started production five years ago and all pollutants’ emissions have been within national standards.

South Korean GS Caltex is Qingdao Lidong’s biggest stakeholder and it holds 60% of the company’s shares. GS Group was founded in 2004 by fourteen subsidiaries breaking away from the LG Group. Total sales of GS Group exceeded $28 billion in 2005. GS Caltex is GS Group’s petrochemical branch focusing on oil refining and aromatic hydrocarbon products production and it occupies one third of South Korea’s domestic energy market.

The second largest stakeholder, OOC holds 30% of the company’s shares. OCC was founded in 1992 and it was owned by the Government of the Sultanate of Oman. Oman now has a proven oil reserve of 5 billion barrels. OCC’s businesses go beyond investing in Oman’s domestic gas and oil market to cover gas and oil exploitation, processing and transportation in Middle East, Middle Asia and Europe.

Holding the remaining 10% of shares, Qingdao Red Star Organic Chemical Company concentrates in the processing of organic chemicals and cargo foreign trade.

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