Oxiranchem: Two wheels Drive Its High-speed Growth     

The rapid development of the global solar photovoltaic industry has brought a golden opportunity to the ethylene oxide industry. As one of China's largest ethylene oxide producers, Liaoning Oxiranchem, Inc. (Oxiranchem, SZ: 300082) has a deep understanding of the characteristics of the industry, a strong R & D capability of technologies and an accurate grasp of market development trends. Due to its unique competitive advantage in technology, market, location and scale, Oxiranchem has grown rapidly in recent years.

Since its inception, Oxiranchem has been engaged in the development, production and sales of polyether monomer and other ethylene oxide-derived fine chemicals which are used as the crystalline silicon cutting liquid for the production of solar cells and used as a water reducing agent for high-performance cement. Its leading product is the cutting liquid for solar polycrystalline silicon. In 2009, the company sold 52 700 tons of the product and occupied a market share of more than 70% in China. So the company is even the world's largest manufacturer of the solar polycrystalline silicon cutting liquid.

Meanwhile, Oxiranchem produces a series of polyether monomer products used as high-performance cement water reducer. Due to the rapid development of China's high-speed railway and other key infrastructural construction, the company faces unprecedented opportunities for development. Its production and sales grow rapidly. Now, the company's polyether monomer occupies a market share of about 25% in China.
  
In 2007, 2008 and 2009, Oxiranchem's sales revenue was RMB521.14 million, RMB947.09 million and RMB1.06787 billion, respectively, and net profit was RMB33.09 million, RMB93.05 million and RMB167.83 million, respectively.
  Oxiranchem owns intellectual property rights on its core technologies and equipment, which are at the international advanced level. This has laid a solid foundation for the company's sustainable development. In the past few years, the company has made massive investments in the R & D to increase its technology reserve.
  The main chemical reaction in the company's production process is a typical green chemical and atom economy reaction. In theory, there are no pollutant emissions in the reaction. The main chemical reaction in the production process is the ring-opening polymerization and ethoxylation of ethylene oxide. Its atom economy reaches 100%. Theoretically, this production process can completely eliminate pollution caused by byproducts of chemical reactions. Unlike the production processes of the traditional chemical industry, it is not a highly polluting process. Therefore, the company can effectively meet the increasingly stringent environmental laws and regulations to achieve resource-conserving, environment-friendliness and sustainable development.

In addition, because ethylene oxide, the main raw material in Oxiranchem's production, is not suitable for long-distance transport, the company has set up its own plants in China's major ethylene oxide producers to significantly reduce insecurity factors. The company will use special pipelines to convey the raw material to reduce transportation costs.

In the aspect of marketing, Oxiranchem has had a long-term good cooperation with the world's largest solar polycrystalline silicon wafer manufacturer LDK Solar Co., Ltd. Since LDK put into production, Oxiranchem has become its only supplier of cutting liquid. LDK's wafer orders have been scheduled to 2018, with a combined capacity of more than 14GW.
  Oxiranchem believes that the demand for its products from the downstream industry is vigorous. The cutting liquid is one of the three major consumables (cutting liquid, silicon carbide and steel wire) for the cutting of silicon wafers. The development of the solar PV industry has driven the rapid development of the polycrystalline silicon cutting liquid industry. In 2009, China's domestic demand for polycrystalline silicon cutting liquid was 129 000 tons. In the past three years, it has achieved a combined growth rate of 116.3%. In 2012, China's output of silicon wafers will reach 7 830 MW, and its demand for cutting liquid will reach 234 900 tons.
  Oxiranchem is currently raising funds for the construction of its 30 000 t/a polycrystalline silicon cutting liquid project, 30 000 t/a solar grade silicon cutting liquid project and 80 000 t/a ethylene oxide-derived fine chemicals project. After the three projects are completed, the company's overall capacity will be raised from 70 000 t/a to 200 000 t/a.

In three years, Oxiranchem will make its ethylene oxide-derived fine and specialty chemicals capacity exceed 300 000 t/a and its combined sales volume of solar crystalline silicon cutting liquid and high-performance cement water reducer exceed 240 000 tons a year.