Troubles Brought to Xiamen PX Project     

It has approached to two years since Dragon Aromatics (Xiamen) Company Ltd. announced on November 17th, 2006 to start the construction of the 800 000 t/a PX (para-xylene) project. On May 30th, 2007 Xiamen Municipal Government of Fujian province announced to stop the construction of the Xiamen PX project. (CCR 2007 No16) More and more rumors concerning this project spread over the country.
   For Dragon Aromatics (Xiamen) Company Ltd., the project became a nightmare since 16 months ago. Amid the claim documents by the contracted suppliers, the bad luck company finds no solution. So far more than 100 contracts signed already need to be modified, involving in compensation and payment. A source close to the company commented the company has never received any paper notice or normal document from the government, therefore no official evidence for the company can be offered to the related partners or suppliers.
   In May this year, the government of Fujian province has made a decision to change the site of PX project to Gulei Economic Development Zone, according to a source unapproved. If the new site is knocked down, the environmental impact assessment must be repeated.