Sinochem plans to raise 10 billion yuan for new nylon materials project

On the evening of April 23, the current total market value of China's chemical industry is 30 billion yuan. The company plans to issue a fixed increase plan. The company plans to publicly issue no more than 1.48 billion shares to no more than 35 specific targets, including the controlling shareholder, China Chemical Engineering. No more than 10 billion yuan. It will be used for nylon new material projects, key engineering project construction, and repayment of bank loans.

According to the plan, the issuance price is determined by auction, and the pricing base date is the first day of the non-public offering of shares. The number of non-public offerings does not exceed 1.48 billion shares. Among them, China Chemical Engineering, the controlling shareholder, participated in the subscription of this issuance in cash, and the number of subscriptions was not less than 17.6% of the number of shares issued this time. At the same time, China Chemical Engineering does not participate in the issuance inquiry process, but promises to accept the bidding results of other issuers and subscribe at the same price as other issuers.

The plan shows that the total investment of the nylon new material project is 10.457 billion yuan, and it is planned to invest 3 billion yuan in raised funds. The project has already started construction and is expected to be put into production in 2022. After the construction of the project is completed, it will break the technical barriers of adiponitrile, use domestic propylene, ammonia, methanol, butadiene as raw materials to produce adiponitrile, further produce hexamethylene diamine, and form a complete nylon 66 chip industry chain, breaking foreign 66 Monopoly in the industry.

Key engineering projects include the NFP 5400MTPD methanol project in Russia and the demonstration project of new materials for coal quality utilization system, with a total planned investment of 4 billion yuan. Among them, the Russian NFP 5400MTPD methanol project is one of the largest methanol projects in a single series plant in the world; the demonstration project of coal quality utilization system for new chemical materials is the world's largest coal chemical project currently under construction, with an estimated total investment of 125 billion yuan. The company believes that the implementation of the above-mentioned projects will help to stabilize the company's industry position and further enhance the Chinese chemical brand.

In addition, the company plans to use part of the raised funds, that is, 3 billion yuan, to supplement working capital to optimize the company's asset and liability structure, reduce financial risks, and improve the company's financing space and ability to resist risks. Specifically, after the issuance, the company's asset-liability ratio will be reduced from 67.56% to 61.27%.

"This investment project is in line with the relevant national industrial policies and the company's overall strategic development direction in the future, and has good market development prospects and economic benefits." Sinochem said that the implementation of the above projects will further enhance the company's engineering construction service capabilities and further consolidate The company's market position enhances the company's core competitiveness.