Scale of Construction
0.25 million tons per year of PO
Propylene epoxide, also short for PO, is the third biggest propylene ramification besides polypropylene and acrylonitrile, which is an important basic organic chemical material. China is going to be the target market of PO for other countries in the world. The supply and demand of PO in China can be regarded as the thermometer of fluctuations in prices in the world. So the Chinese PO market dominates the world market. There are over 30 companies which produce PO and the output reaches 0.3 million tons a year. However, there is a big gap between supply and demand. So the project of PO will have a promising future.
Content of Construction
The project is built in Jining Development Zone of Chemical Industry. The project plans to adopt hydrogen peroxide PO.
Relative Supporting Facility
Currently the supporting public works in the development zone can meet the need of construction. The project is established in the MTO project with 0.6 million tons a year. And then bring the advantage of raw material to extend industrial chains.
Analysis of Investment and Benefit
The total investment is 1.6 billion RMB and the sales revenue per year will reach 2.75 billion after completed. And the annual total cost is 2.43 billion RMB. So the profit is 0.32 billion RMB per year, ROI is 20% and the payback period is 5 years (including 2 years of construction period).
The feasibility study report has been already completed.
Ways of Cooperation
Joint venture, sole proprietorship or joint-stock system