UpdateChina’s Jinlong to run PC plant at 100%

29 June 2007 10:58  [Source: ICIS news]

(Adds quote, feedstock details, tax benefits in paragraph 4-7)

SHANGHAI (ICIS news)--China’s Zhongke Jinlong Chemical Co is to ramp up production at its newly started 20,000 tonne/year polycarbonate (PC) polyols unit to full capacity in early July, a company source said on Friday.

The company started to sell its on-spec PC polyols earlier this week, setting prices at yuan (CNY) 18,000/tonne ($2,362/tonne).

The plant, in Taixing city, Jiangsu province, came on stream on 20 June. It adopted Chinese technology and was the first industrialised PC polyols unit with capacity exceeding 10,000 tonnes/year in the world, he said.

Carbon dioxide, the major feedstock, would mainly be sourced from the released carbon dioxide from the surrounding power plants, refineries, cement plants, brewhouse, and fertilizer plants.

 “We will also take advantage of the rich underground carbon dioxide resource in the region of Taixing city,” he added. However, he declined to elaborate on how exactly this will be done.

“Downstream converters, who are making shoe sole slurry and elastomer, showed great interest in our products as our prices are much better than their traditional raw materials - polyester (PET) polyols, which was priced at over CNY20,000/tonne,” he said, expecting that PET polyols could be substituted by PC polyols in the future.

The company will also benefit from on favourable taxation policies by Chinese government as polyurethane made from PC polyols is an environmentally friendly material compared with polyether and polyester based polyols. Its bio-degradation rate is around 30%, which is close to plant fibre, he added.

The company is a joint venture between Jiangsu Yuhua Jinlong Technology Group Co and Chinese Academy of Sciences Guangzhou Institute of Chemistry.

($1 = CNY7.62)

By: Becky Zhang
+65 6780 4359

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