China Coal Energy plans $3bn coal-based Shaanxi plastics project

14 May 2013 04:50 Source:ICIS News

SINGAPORE (ICIS)--China Coal Energy is planning to invest yuan (CNY) 19.3bn ($3.1bn) to construct a 600,000 tonne/year engineering plastics project at Yulin in Shaanxi province, the major coal producer said on Tuesday.

The project will be based on coal, which will be first converted to methanol, and then to plastics, the company said in a statement.

Output from the project is intended to cater to the east China markets, China Coal said.

No definite timetable was provided on when construction will start, but the company estimated that the project will take four years to complete.

China Coal is undertaking the project to extend its product chain downstream in view of China’s weakening demand for thermal coal since last year amid a slowing economy, the company said.

($1 = CNY6.15)

By Fanny Zhang