Kingboard unit to produce acetic acid in Hebei

24 January 2008 03:51  [Source: ICIS news]

SINGAPORE (ICIS news)--G-Prop, a real-estate company majority owned by Kingboard Chemical, plans to invest $98m (€66.6m) in a large-scale acetic acid plant in China, a company official said on Thursday.

The 500,000 tonne/year project in Hebei province will widen the company’s portfolio and provide an opportunity to enter the Chinese petrochemical market, she added.

G-Prop will set up two subsidiaries Hebei Chunshun Chemical and Hebei Yingdu Gasification to operate the project, the official said, adding that the plan was subjected to shareholders’ approval.

She declined to say whose technology would be used and when the project would start up.

G-Prop planned to use Hong Kong dollar (HK$) 175m ($22.4m) from its subscription proceeds to fund the acetic acid project. The company is also investing in a yuan (CNY) 2.1bn ($290.5m) methanol project at Erdos, Inner Mongolia province.

The project’s first phase, a 1m tonne/year methanol unit, will be built by 2010 and the second 800,000 tonne/year unit, will be ready by 2012.

Kingboard Chemical already operates units producing over 1m tonnes/year of methanol in China.

($1 = €0.68/HK$7.81/CNY7.23)

By: Florence Tan
+65 6780 4359

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