The total investment is about 12.5 billion! Lianhong Xinke 300,000 tons of PO, 200,000 tons of EVA and other projects officially announced

On December 19, Lianhong Xinke released "Announcement on the investment and construction of new energy materials and biodegradable materials integration project of its holding subsidiary".

Basic Information of the Project

Project name: Integration project of new energy materials and biodegradable materials

Project implementation subject: holding subsidiary Lianhong Gerun

Place of construction: Lunan High-tech Chemical Industry Park, Tengzhou City, Shandong Province

Nature of project construction: Newly built

Project construction contents: 1.3 million tons/year DMTO unit (methanol to olefin unit), 200,000 tons/year EVA unit (ethylene - vinyl acetate copolymer unit), 300,000 tons/year PO unit (propylene oxide unit), 50,000 tons/year PPC unit (polypropyl carbonate unit), 20,000 Nm3/h PSA Device (hydrogen purification device), general drawing storage and transportation, supporting public works and auxiliary production facilities, etc.

Planned project investment: The total project investment is expected to be about 12.5 billion yuan. The project funds come from its own funds and self-raised funds, including refinancing, bank project loans, etc. Construction period is 3 years.

Project feasibility analysis

(1) The project has advanced technology and strong competitiveness

The 200,000-ton/year EVA project uses LyondellBasell high-pressure tubular process technology to mainly produce photovoltaic film materials with high added value. After the implementation of the project, the company will have the world's leading LyondellBasell tubular process and ExxonMobil still process. It is beneficial to improve the elasticity of production operation and promote the development of new products.

The PO project adopts the world's leading co-oxidation CHP process technology. Compared with other PO production technologies, it has the advantages of high product yield, less byproducts, low single consumption and low carbon emission.

(2) The location advantage of the project is obvious, and the integrated layout has good synergy effect

The project is located in Lunan High-tech Chemical Park, East China, which is the most important EVA production and consumption area in China, and the downstream photovoltaic film enterprises are concentrated. This region is also the main PO demand in China, and its PO demand accounts for about 81% of the national demand, so it has a strong geographical advantage.

The company produces methanol, ethylene, propylene, vinyl acetate, carbon dioxide and other main raw materials required by the terminal products of the project. The construction of public works and auxiliary facilities can rely on the existing resources of the company and fully coordinate with the existing industrial chain, so as to realize the recycling and comprehensive utilization of resources. The integrated layout has obvious advantages.

Project economic benefit analysis

According to the feasibility study report of the project, the after-tax internal rate of return of the integration project of new energy materials and biodegradable materials is 19.50%, the payback period of the project is 6.99 years (including 3 years of construction period), and the economic benefits are good.

The purpose of the project construction and its impact on the company

After the project is completed and put into operation, the product structure of the company will be more abundant and the product scale will be significantly improved. It can fully cooperate with the existing production base and the industrial chain of the company to realize the recycling and comprehensive utilization of resources, and the industrial chain integration advantage is obvious. After the project is put into operation, EVA production capacity will be greatly improved to better meet the growing demand of photovoltaic downstream field in the future, and consolidate the company's competitive advantage in photovoltaic film material, high-end cable material and other fields. PO products can provide sufficient raw materials for PPC products and lay a solid foundation for further intensive processing and extension of the industrial chain. PPC products will further enrich the company's product categories of biodegradable materials, facilitate the efficient recycling of carbon dioxide, and effectively enhance the company's market influence in the field of biodegradable materials.