Yuntianhua to Resume Synthetic Ammonia Production       

Yunnan Yuntianhua Co., Ltd. (Yuntianhua, SH: 600096) announced on April 8th, 2009 that the explosion happened at the 500 000 t/a synthetic ammonia unit has caused a fixed loss of RMB9 million. The company has taken it online on April 14th.
   This explosion happened on March 23rd, 2009. (CCR2008 No.10) As reported, the accident caused by high-temperature and high-pressure nitrogen and hydrogen mixture gas which plumped out the suddenly fractured outlet pipeline of the converter. It is also reported that the accident has not brought pollution to environment.
   The company predicted publicly on April 9th that it will suffer a loss for the first quarter operation due to the fact that the selling prices for fiberglass, organic chemicals and electronic fabrics continued to go down in response to the soft demand, the synthetic ammonia and urea units are offline in the first two months because of the tight supply of natural gas, the accident caused production drop. The 500 000 t/a synthetic ammonia unit of Yuntianhua's holding subsidiary - Yunnan Tianan Chemical Co., Ltd. has been operating well below the full capacity since its startup in June 2008 because of price down, which also contributed to the loss.
    As of the merge announced in November 2008 (CCR 2008 No.33), Yuntianhua commented on April 16th that the merge preparation work is underway, but without significant progress till now.