Hualu Hengsheng's 300,000-ton caprolactam and nylon supporting equipment was put into operation

On October 9, Hualu Hengsheng released an announcement on the commissioning of caprolactam and supporting devices for the new material project of amide and nylon
.
The main contents of the announcement are as follows:

Shandong Hualu Hengsheng Chemical Co.
, Ltd.
(hereinafter referred to as the "Company") amide and nylon new material project (300,000 tons/year) caprolactam and supporting devices have opened up the process, produced qualified products, and entered the trial production stage
.
Production facilities such as 200,000 tons of nylon 6 chips are currently under construction and are expected to be put into operation in the first half of next year
.

1.
Approval of the project

1.
On March 15, 2019, the company held the fourth meeting of the seventh board of directors, and reviewed and approved the "Proposal on the Company's Amide and Nylon New Material Project (300,000 tons/year)", please refer to the company in Shanghai Securities for details.
The "Announcement on Hualu Hengsheng's Investment in the Construction of Amide and Nylon New Material Projects (300,000 tons/year)" (No.
Lin 2019-011) disclosed on the exchange website (www.
sse.
com.
cn) and related media
.

2.
On May 15, 2019, the company held the 2018 annual general meeting of shareholders, and reviewed and approved the "Proposal on the Company's Amide and Nylon New Material Project (300,000 tons/year)"
.

2.
Basic information of the project

The amide and nylon new material project (300,000 tons/year) uses benzene and hydrogen as raw materials, adopts advanced technology, and mainly builds cyclohexanol, cyclohexanone and caprolactam plants, and supports the construction of hydrogen peroxide and sulfuric acid plants
.

According to the feasibility study report, the estimated total investment of this project is 4.
98 billion yuan, and the project construction funds will be solved by the company's own funds and bank loans
.

The impact of the project on the company

After the caprolactam and supporting devices are put into production, the annual output of caprolactam is 300,000 tons and ammonium sulfate is 480,000 tons, which can further expand the company's new chemical materials sector, optimize product structure, and improve corporate profitability
.