China BlueChemical to divest Baotou CTO project

24 February 2014 07:39 Source:ICIS News

SINGAPORE (ICIS)--Hong Kong-listed China BlueChemical has decided to divest its coal to olefin (CTO) project at Baotou in Inner Mongolia because of a gloomy outlook, a company official said on Monday.

The company currently owns a 100% interest in the project, which will convert coal into methanol and further to olefins and other chemicals, he said.

It was designed to produce 600,000 tonnes/year of olefins, 300,000 tonnes/year of acetic acid plus some 1m tonnes/year of other chemical products, according to an early statement from the company.

“Although the project was established in 2008, constructions have never begun. We found that it’s too difficult to get access to coal feedstock. We’ve invested some CNY100m in it and so many years have passed. We no longer want to be trapped in it,” he told ICIS.

“After evaluation, we found it better to quit,” he added.

China BlueChemical offers to sell the entire project for approximately yuan (CNY) 102.6m ($16.8m) at China Beijing Equity Exchange (CBEX), slightly higher than its evaluation of CNY100m. 

($1 = CNY6.09)

By Fanny Zhang