February 26, 2018 Xinfengming announcement said that considering the company's follow-up development, optimizing the allocation of resources to the upstream extension of the industrial chain, the Board considered and decided to Dushan Energy 2.2 million tons / year PTA project to start construction.
The total investment is 4 billion yuan, of which 3.76 billion yuan is for construction investment (including 80.4 million U.S. dollars in foreign exchange) and 240 million yuan is for working capital at the end of the project. The funds required for the project investment are self-financing or partially applied for bank loans. The project site is located in Pinghu, In the Dushan Port Economic Development Zone, 513 mu of newly-requisitioned land is planned to be built, and 144,825.00 sq.m. of newbuildings (structures) such as PTA installations, control rooms, power distribution rooms and finished products depot will be built.
The project imported 20 sets of imported equipment such as process air compressor unit, oxidation reactor mixer, crystallizer mixer, PTA powder air delivery system and refined feed preheater, purchased oxidation reactor, pressure distillation tower, Oxidation crystallizer, refined crystallizer, hydrogen recovery system, tail gas catalytic incinerator and other domestic equipment as well as desalination water treatment system, circulating cooling water system and other public engineering equipment, using industry-leading green, intelligent PTA production technology to form 220 Tons of tons / year PTA production capacity.
The project's PTA hourly production capacity is 275 tons, with an annual operating time of 333 days or 8,000 hours and an annual production of 2,200,000 tons of PTA. Project PTA products implement the Standard for Industrial Purified Terephthalic Acid (SH / T1612.1-2005) , Product performance index to achieve superior product requirements.
The project PTA production process mainly includes the oxidation section and the refining section, wherein during the oxidation section, the raw material paraxylene, the acetic acid solvent, the liquid catalyst and the HBr are mixed and then sent to the oxidation reactor to react with the oxygen in the air , Crude terephthalic acid (TA) is produced.In the refining section, the TA produced in the oxidation section is purified to reduce the 4-carboxybenzaldehyde (4-CBA) content and other impurities to obtain the PTA product meeting the product specifications.
The main equipment program of the project is mainly domestic procurement, and the domestic PTA device localization rate is about 80% for the equipment that has no similar products or no manufacturing capacity in China and is purchased in the international market. During the construction and operation of the project, Strict implementation of environmental protection 'three simultaneous' system to strengthen the prevention and treatment of various types of pollutants, strict compliance with environmental laws, regulations and standards of the provisions and requirements.
The project is scheduled to be completed and put into production in the third quarter of 2019. The sales price of the products is determined according to the market conditions and the estimated annual operating income after production reaches the estimated value of RMB1,155,997.60 million.The value added tax for the production year is RMB267,152,000 and the tax and surcharge is estimated to be RMB26,715,000, After calculation, the normal year's total profit is 870.03 million yuan and the profit after income tax is 652.5230 million yuan.Project period can provide society with about 400 long-term employment opportunities.At the same time, the project will be put into operation directly downstream chemical fiber, film , Packaging, transportation and other industries bring employment opportunities, the project employment multiplier effect is obvious.
Xinfengming has formed 2.73 million tons of polyester filament production capacity, PTA annual demand of more than 2.3 million tons of PTA produced after the completion of the project by the company for their own use, the company will improve the industrial chain, to ensure that the main raw material of polyester filament PTA The supply, to further enhance the overall competitiveness.
In the supplementary announcement of Xinfengming Co., Ltd. said that the investment amount of the project is relatively large, although the company has certain financial strength and the credit of the bank is good, there is still a risk that the fund raising will not be put in place and the progress of the project will be affected. The construction period is longer and the construction quality is higher. Although the Company has fully demonstrated the key factors such as the technical scheme and equipment selection involved in the construction of the project, in the process of construction, it is impossible to completely eliminate the problems caused by the poor management of the organization or Other unforeseen factors lead to the failure of the project construction to be completed on schedule or fail to meet the schedule and the implementation of the project is closely related to the market supply and demand, national industrial policies, industry competition, technological progress, company management and personnel, Changes may directly affect the economic benefits of the project.Although the company has conducted a full market research and feasibility assessment in the project selection, but in the actual operation process, due to the market itself has the uncertainties, if the future business market demand Growth was lower than expected, or business marketing progressed with company projections Poor, there may be a risk not achieve the desired benefits after the implementation of investment projects.