Lutianhua Alters Investment Plan Following Stimulus Program for Petrochemical Industry     

Sichuan Lutianhua Co., Ltd. (Lutianhua, SZ: 000912), a leading urea producer in China, announced on May 22nd to revise its investment plan with a swift response to the stimulus program for petrochemical industry released on May 19th.
   Under the latest expansion blueprint, Lutianhua plans to invest RMB4.17 billion for building a 400 000 t/a synthetic ammonia facility, 700 000 t/a urea unit and 200 000 t/a methanol project using coal as feedstock. The site is now selected in Ningdong Coal Chemical Base, 43 kilometers southeast of Yinchuan, the capital of Ningxia autonomous region.
   Originally, the company arranged its fully-owned subsidiary Ningxia Jiemei Fengyou Chemical Company Limited to construct a 440 000 t/a synthetic ammonia and 760 000 t/a urea projects as well as 200 000 t/a methanol unit in Yinchuan Eco-Tech-Deve Zone with natural gas as raw material.
   Considering the new plan, Lutianhua signed an accord with Sichuan Tianhua Co., Ltd. on May 14th, to jointly increase a total investment of RMB879 million for Ningxia Jiemei Fengyou. Upon completion of the investment increment, Ningxia Jiemei Fengyou will be a 68.25 : 31.75 joint venture between Lutianhua and Sichuan Tianhua. Lutianhua currently holds a 59.27% stake in Sichuan Tianhua.