Dow Jones Newswires
DJ China Yanshan Petrochem Gets Loans For Ethylene Expansion
Dow Jones Newswires
SINGAPORE -- The Bank of China granted 1.2 billion yuan ($1=CNY8.28) and US$132.11 million in loans Tuesday to Yanshan Petrochemical Co. Ltd. for the expansion of its ethylene capacity, China Daily reported Wednesday.
The Beijing-based company, which falls under China Petrochemical Corp., or Sinopec, is now expanding its ethylene capacity from 450,000 metric tons a year to 660,000 tons/year. The expansion is expected to be complete August 2000.
The expansion calls for an outlay of CNY3.8 billion, the report said.
Yanshan Petrochemical, which is listed on the Hong Kong and New York stock exchanges, will use the loans to import technology and equipment, according to the report.
The expansion will use ethylene cracking technology developed by ABB Lummus of Switzerland and a research and development center under Sinopec, the report said.
China's annual ethylene capacity stands at 3.94 million tons, with production averaging 3 million tons/year.
The domestic production can only meet 50% of the demand for petrochemicals, according to Cao Xianghong, chairman of Yanshan Petrochemical.
-By Xu Yihe; 65 421 4815; yxu@ap.org
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