Current situation and expansion of Qilu Chemical I

The current situation and expansion of Qilu Chemical Industry Park in Zibo, Shandong

the current situation and expansion of Qilu Chemical Industry Park in Zibo, Shandong

July 27, 2002

Shandong Zibo Wanjie industrial group will build a 530000 ton/year purified terephthalic acid (PTA) plant in the newly completed Qilu Chemical Industry Park in Zibo, Shandong

(QCIP)

the company has completed the feasibility study of this 2.37 billion yuan (289.3 million US dollars) project, which provides raw materials for Wangui's pet and polyester yarn devices in QCIP

the company operates a 20000 ton/year partially oriented yarn (POY) and/or drawn twisted yarn conversion device, and is also building a 20000 ton/year polyester synthetic yarn device. Shandong provincial government has not approved the PTA project yet. If the provincial government agrees with the project, it will submit the project proposal to the National Development Planning Commission

Wanji is the 15th company in China to plan the PTA project, and the company hopes that the project can be put into operation in 2005. This

company has not discussed the joint venture of the project with any foreign investors, but this project has been included in 12 projects of QCIP

Shandong provincial government has set aside 30million US dollars for QCIP infrastructure. A new highway connecting Zibo and Qingdao is under construction. Qingdao, a big port, will serve the park. Another highway is a trunk line from Zibo to Jinan International Airport. This highway has been completed

the most important purpose of the new industrial park is the 450000 T/a cracking unit of Qilu Petrochemical Company, which will be expanded to 720000 T/a by 2004

the PVC, vinyl chloride monomer and polyolefin units of Qilu Petrochemical Company and the ester alcohol and plasticizer units of Qilu Petrochemical Company Eastman joint venture company are also in QCIP. The joint venture is also developing carbonyl derivatives projects there

there are other projects in the region. Qilu plasticizer company and Dongda chemical group want to expand the production capacity of plasticizer and propylene oxide/polyether polyol respectively. The carbonyl derivatives project of the existing plant and Eastman Qilu petrochemical joint venture company covers an area of 21 square kilometers in the park. In addition, if there is an "auto" mode, 5 square kilometers of land will be set to automatic first, which is intended to be used by other projects by pressing the clear key

Qilu Petrochemical Company plans to expand acrylonitrile and ABS units in QCIP, and build methionine, PVC sheets and PVC pipes

Qilu Petrochemical Company also wants to expand the 130000 ton/year acrylonitrile unit to 170000 ton/year, and the 200000 ton/year ABS

unit to 400000 ton/year

the new project includes a set of 34, experimental principles and methods, 10000 ton/year methionine plant, a 200000 ton/year PVC sheet plant and a 100000 ton/

year polypropylene pipe plant

Qilu's new installations and expansion projects can also reduce its carbon footprint. The driving time is tentatively scheduled to be years. Other details are being considered. These projects of the company need to be approved by the Chinese government

according to Shandong Provincial Commission of foreign economy, technology and trade, the projects of Qilu Petrochemical Park include: 530000 T/a PTA of Shandong Zibo Wanji industrial group, 130000 T/a acrylonitrile project of Qilu Petrochemical Company (from 130000 T/A to 170000 T/a), ABS Project (from 200000 t/a to 400000 T/a), methionine project (30000 T/a),

PVC sheet (200000 t/a) Polypropylene pipe (100000 tons/year). Dongda Chemical Group's propylene oxide project

(expanded from 80000 tons/year to 120000 tons), polyether polyol (expanded from 60000 tons/year to 120000 tons/year); Qilu

plasticizer company's 1,4-butanediol (30000 tons/year), polyphenylene oxide (5000 tons/year), advanced plasticizer (30000

tons/year); Polyester staple yarn of Linzi Hongxing Chemical Company (50000 tons/year)