The Chia Tai Fine Chemical Corporation has signed an agreement to set up a CTO (coal to olefin) project joint venture in the city of Yulin of Shaanxi Province, the company's parent company said on September 1.

Chia Tai Fine Chemical is a subsidiary of the Hong Kong-listed Sino Biopharmaceutical Ltd., which belongs to the Chai Tai Pharmaceutical Group. The CTO deal was signed with the Shanxi Coal Chemical Group, the Shaanxi Provincial Investment Group and the Shaanxi Xinxing Coal Chemical Co., Ltd.

According to the agreement, the Hong Kong partner will take a 43% stake in the project, while the three partners will take 36%, 16% and 5 respectively.

The project will require RMB 5 bln (USD 630 mln) in total investment.
The announcement released by Sino Biopharmaceutical said that the joint venture would start operation in the first quarter of 2007.

The Dalian Institute of Chemical Physics (DICP) will supply technology support to the project Liu Hangman; a senior official with DICP said that first-phase construction would involve a pilot 600,000-ton CTM (coal-to-methanol) project.

Source:佚名