Longchang Chemical April 30, 2022 Project Announcement
On the one hand, it plans to invest in the construction of 60,000 tons/year acrylic acid and 50,000 tons/year butyl acrylate projects, which will form an industrial chain linkage with the 500,000 tons PDH project already put into operation and increase the capacity of acrylic acid and esters; on the other hand, it will use the hydrogen by-product of PDH and other plants to invest in the construction of On the other hand, we will use the hydrogen produced by PDH and other plants to invest in a hydrogen upgrading project.
At the 15th meeting of the 3rd session of the Board of Directors of Longchang Chemical held on April 28, 2022, the proposal of investing in the construction of 60,000 tons/year acrylic acid and 50,000 tons/year butyl acrylate project was considered and approved, agreeing that the Company should invest in the construction of 60,000 tons/year acrylic acid and 50,000 tons/year butyl acrylate projects. The details are as follows
I. Overview of the proposed project
1. Name of the proposed project: 60,000 tons/year acrylic acid and 50,000 tons/year butyl acrylate project.
2、Project implementation body: The project is invested and constructed by Longchang chemical.
3、The background and necessity analysis of the project
Acrylic acid is an unsaturated carboxylic acid with a wide range of downstream applications. It is an important intermediate between petrochemical bulk products and downstream fine chemicals, of which about 50% is used in acrylic esters and the remaining 50% is used in SAP and other polyacrylic acid copolymers. Acrylic acid and its esters, by themselves or mixed with other monomers, will undergo polymerization to form homopolymers or copolymers. Common monomers that can be copolymerized with acrylic acid include amides, acrylonitrile, vinyl-containing, styrene, and butadiene. These polymers are used to produce a wide variety of plastics, coatings, adhesives, elastomers, floor polishes and paints.
The propylene produced by the company can be transported to the project through the pipeline to provide sufficient raw material supply for the production of acrylic acid, which can further reduce the production cost of the products and enhance the profitability of the company’s products, which is of great significance to the company in extending the industrial chain, optimizing and improving the added value of the products and improving the overall economic efficiency of the company.
4、Project investment estimate and source of funds
The project is expected to have a total investment of 456 million yuan, of which 355 million yuan will be invested in fixed assets and 17.2 million yuan will be paved working capital, all of which will be self-financed by the company.
5. Project construction period: The project is expected to last for 12 months (excluding project declaration).
II. Impact on the company
The Company proposes to invest in the construction of 60,000 tons/year acrylic acid and 50,000 tons/year butyl acrylate projects, which are environmentally friendly, energy-saving and highly efficient, in line with the development plan of the national industrial policy. The project can form an upstream and downstream linkage of the industrial chain with the 500,000 ton/year propane dehydrogenation project of the Company and increase the production capacity of acrylic acid and esters, which is conducive to the advantages of industrial integration, thus effectively controlling costs and maximizing product benefits.
The first phase of the 30,000-ton-per-year methyl methacrylate (MMA) monomer project with an annual production capacity of 3,000 tons and supporting public auxiliary works is completed and will be officially put into operation soon.
The project, which was located in Binhai Industrial Park of Weifang City in 2020, mainly uses methanol and methyl acetate to synthesize methyl methacrylate, realizing the transformation from coal chemical to organic matter. Because of the uncertainties in the designed line and realistic operation, timely adjustment and technical transformation are needed, as of now, the six units of trial production have been carried out to the third unit.
Methyl methacrylate (MMA) is an indispensable monomer for the production of materials such as aerospace glass and electronic information devices. The project adopts the R&D achievements of the Institute of Engineering of the Chinese Academy of Sciences for many years and has completely independent intellectual property rights.
The proposed investment for the first phase of the project is 480 million yuan, and the proposed investment for the second phase is 1.2 billion yuan. When the 30,000-ton MMA monomer project is fully completed, it will accelerate the development of the downstream PMMA, coating,