Shenma intends to set up a joint venture company to build a 120,000-ton/year BDO project

Shenma Co.
, Ltd.
announced on the evening of June 22 that the company plans to jointly invest with Etuoke Banner Jianyuan Coal Coking Co.
, Ltd.
and Etuoke Banner Weiju Technology Co.
, Ltd.
to establish Ordos Shenma Jianyuan New Materials Co.
, Ltd.
, a joint venture company The planned construction scale is 120,000 tons/year BDO project
.

The registered capital of the joint venture company and the method of capital contribution: the registered capital is 480 million yuan, Shenma Co.
, Ltd.
contributed 187.
2 million yuan in cash, accounting for 39% of the registered capital, and Jianyuan Coal and Coke contributed 172.
8 million yuan in cash, accounting for 36% of the registered capital.
Weiju Technology invested 120 million yuan in cash, accounting for 25% of the registered capital
.

The planned construction scale of the joint venture is a BDO project of 120,000 tons/year
.
The scale of the main equipment of the project: 120,000 tons/year BDO unit; 250,000 tons/year formaldehyde synthesis (37%wt) unit supporting BDO unit, 39,600 tons/year acetylene generation unit, as well as supporting solid storage and transportation, primary water station , circulating water station, reuse water station, sewage treatment station and other public works and auxiliary production facilities
.
The project construction period is 2 years
.

According to the feasibility study of the project, the total investment of the project scale (the total investment of the project submitted for approval) is 1,555.
86 million yuan, of which: the construction investment is 1,469.
25 million yuan
.
After the implementation of the project, the average annual sales income during the production period is 1,776 million yuan (tax included)
.
The pre-tax financial internal rate of return of the project is 25.
7%, the post-tax financial internal rate of return is 20.
7%, the pre-tax investment payback period is 6.
1 years, and the after-tax payback period is 6.
9 years
.

Shenma Co.
, Ltd.
is a large state-owned enterprise mainly engaged in chemical industry and chemical fiber.
It has a complete nylon chemical industry chain with high technology content and obvious characteristics of circular economy.
Shenma nylon series products have customers in more than 40 countries and regions in Europe, America, Asia, etc.
region, enjoys a high reputation in domestic and foreign markets
.
The investment partner, Jianyuan Coal & Coke, is a large-scale coal-coking integrated industry group in China, mainly involved in coal mining, washing, coking, chemical and other industries.
It has abundant resources such as coking coal, coke, steam, hydrogen and hydrogenated benzene
.

The main business of Etuoke Qi Jianyuan Coal Coking Co.
, Ltd.
: coal mining, coking, gas operation, sales of coal tar, benzene, chemicals, fertilizers and other chemical products (excluding licensed chemical products)
.
Inner Mongolia Jianyuan Energy Group Co.
, Ltd.
holds 100% equity of Jianyuan Coal and Coke Company
.

The main business of Etuoke Qi Weiju Technology Co.
, Ltd.
: chemical product production, sales, chemical production equipment manufacturing, engineering management services; coal and product sales; supply chain management services; coal, chemical, power industry investment and management
.
It is the financial investor of this investment cooperation and does not participate in the decision-making and operation management of the joint venture company
.

On the morning of June 22, the signing ceremony of the joint venture and cooperation project between China Pingmei Shenma Group and Inner Mongolia Jianyuan Group was held in Zhengzhou
.
According to the joint venture agreement, Shenma Group and Jianyuan Group will jointly invest in the construction of a refined adipic acid project with an annual output of 1.
2 million tons, a BDO project of 600,000 tons, a crude benzene refining project of 300,000 tons, and a 2GW new energy power generation project.
A bridgehead and demonstration base for large-scale development
.