China Chemical Expands MA Capacity; Begins Site Development for BDO Plant

摘要

China Chemical (Zibo, China), a manufacturer of organic chemicals, says it has completed the expansion of its maleic anhydride (MA) production facility and has begun site development for its planned 50,000 m.t./year 1,4-butanediol (BDO) production facility. The expansion of the MA plant capacity by 30,000 m.t./year doubles the company’s total MA capacity to 60,000 m.t./year. The expanded MA plant is in its testing phase, and testing is expected to be completed by the end of this year. The BDO plant is scheduled for completion in 2012. China is the world’s largest consumer of MA and BDO and accounts for 23% of the global demand for the two chemicals, China Chemical says. BDO production capacity in China grew 96.5% in 2009 compared to the year before, in response to strong domestic demand, the company says. BDO utilizes MA as a feedstock and is used in a wide variety of commercial applications. “These two projects form the core of our expansion strategy over the next five years and will enable us to continually meet the vast demand from China's manufacturing sector for organic industrial chemicals,” says Lu Feng, chairman and CEO of China Chemical. “The BDO cogeneration facility will boost our competitive advantage by diversifying our product lines. The gross margin of BDO is expected to be more than double that of MA, [which is] currently our most profitable product. We believe that our ability to produce BDO and its feedstock in-house will result in increased sales and greater profitability for the company. BDO is in high demand among China's fastest-growing consumer goods industries”.