China Sanjiang Chemical Industry Plans to Build Projects of Ethylene

China Sanjiang Chemical Industry (02198) announces that the Group is planning to build an annual production of 1 million tons of ethylene and 1 million tons of ethylene oxide/ethylene glycol project (new project) in the new chemical materials Park of Jiaxing Port Area, Zhejiang Province, China. The upstream portion of the planned new project is an ethylene production plant with an annual output of 1 million tons, which plans to use ethane, naphtha and propane as the main inputs. The planned new projects can adjust the proportion of these three major inputs in the new project production plant according to the market prices of ethane, naphtha and propane to avoid the market risk and price fluctuation risk of relying on a single raw material.

The downstream EO/Ethylene Glycol plant of the planned new project can adjust the output ratio according to the market price of the product EO and Ethylene Glycol to avoid the risk of price fluctuation of the single product in order to maximize profits. The board of directors is planning to work on bank financing arrangements for new projects and related approvals and licences.