15 March 2004 00:01 [Source: ACN]
GUANGZHOU Zhongkexin Group is to produce a total of 1m tonne/year of polyvinyl chloride (PVC) in two phases in Erdos, Inner Mongolia, China.
A company source told ACN that the Chinese government had approved the feasibility study on the two-phase project, which would be integrated with vinyl chloride monomer and chlor-alkali units.
In the first phase, a 500 000 tonne/year acetylene-based PVC unit and a chlor-alkali unit would be built. Construction of the first phase would start next month, said the source, although he declined to name the licensors for the project.
He said startup was slated for September 2005, and added that the first phase was expected to cost Rmb2.8bn (US$338.3m).
The source said the second phase would be of the same scale as the first; it would come onstream in 2010. Acetylene feedstock for both phases would come from a 1m tonne/year calcium carbide project in Erdos to be built by two companies – Inner Mongolia Sanwei Ferrous Alloy Co and Erdos Yide Resources Co.
Zhongkexin and its partners have formed a joint-venture company, Yili Chemical Industrial Co, for the PVC project.
Zhongkexin and its Shenzhen-listed subsidiary, China Tungsten & High-Tech Materials Co, will take a combined 50% stake in Yili Chemical.
Elion Resources Group and its subsidiary, Shanghai-listed Inner Mongolia Yili Science and Technology Industry Co, will hold a combined 49% share in Yili Chemical. A private investor will hold the remaining 1%.
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