Recently, Cedar Holdings together with its subsidiaries has sped up their work and production resumption. Qixiang Tengda, a core company of Cedar Chemical Group made another breakthrough in new chemical materials after the start of ADN (Adiponitrile) project.

On April 9, the Global Online Signing Ceremony of Licensing Agreement for the INA Project in Zibo, China took place through video conferencing in 7 locations across the world. Through this agreement, Qixiang Tengda will bring in Dimersol from France's Axens and LP OXO℠ technology jointly developed by Johnson Mattey and the Dow Chemical Company to its newly built INA plant. With an annual capacity of 200,000 mt, the plant is expected to have a large INA production capacity within China. What's more, Qixiang Tengda obtained the exclusive license for the patented LP OXO℠ technology for use within Shandong Province for a certain period.

Qixiang Tengda

INA is an important precursor of the new eco-friendly plasticisers and a key ingredient to sectors where businesses of the "new infrastructure construction" specialise in. China has been relying heavily on imports from overseas to meet domestic demands of INA. After going into production, Qixiang Tengda's INA plant will be able to supply the China's market with another 200,000 mt of INA every year. This could effectively satisfy China's demand of INA, reduce the country' s reliance on imports and boost the "new infrastructure construction" nationwide.

King Cheung, Chairman of the Board of Cedar Holdings, said in the ceremony "We feel so proud of this cooperation for its huge market potential in China and capability of making China's plasticiser sector even greener."

Ever since the takeover by Cedar Holdings, Qixiang Tengda has dramatically picked up its pace in world-leading technology acquisition, high value-added fine chemicals manufacturing, and quality growth of new chemical materials. An industry cluster featuring advanced new chemical materials has taken shape.

In 2019, Qixiang Tengda was granted a license for HP process technology owned by Evonik and HPPO technology jointly owned by Evonik and ThyseenKrupp, both of which was applied in a newly started project of PO production with an annual capacity of 300,000 mt.

On February 21, the construction of Tianchen Qixiang New Nylon Industrial Base was officially started. The cooperation between Qixiang Tengda and China Tianchen Engineering Corporation (TCC) received a total investment of RMB 20 billion with an annual capacity of 1 million mt. ADN plant with an annual capacity of 500,000 mt will be included. It is estimated that the industrial phase's first phase be put into operation by the end of 2021.

Apart from that, Qixiang Tengda has four advanced chemical new material units and anxillary facilities either planned or under construction: MMA unit (annual capacity of 200,000 mt), PMMA unit (annual capacity of 100,000 mt), PDH unit (annual capacity of 700,000 mt), PO unit (annual capacity of 300,000 mt) and INA unit (annual capacity of 200,000 mt). After completion, they are expected to significantly increase Qixiang Tengda's revenue and profit.

The INA plant will mainly use C4, syngas and hydrogen as raw materials, which will result in more advanced processing of C4, higher value-added and larger portfolio of products as well as an extended C4 value chain of Qixiang Tengda.

"As always, in 2019 Qixiang Tengda produced and marketed its chemicals entirely on their own." said an analyst of a large securities company. Providing competitive alternative to imported INA, the new plant will raise Qixiang Tengda's gross margin and profit. With new projects gradually in place, Qixiang Tengda expects to switch the focus of its product portfolio to fine chemicals in the next 2 to 3 years, which is a full of powerful potential.

Article courtesy of Xinhuanet.