Xinjiang Tianye Forms Firm to Run New EG Plant

Xinjiang Tianye plans to join with its controlling shareholder Xinjiang Tianye (Group) Corporation (“Tianye Group”) to fund and set up a temporary project company named Xinjiang Tianye Combined New Material Limited Corporation, according to the notice published by Xinjiang Tianye on June 23. The project company will undertake construction and operation of the 600 000-t/a first phase of a 1 million t/a syngas-based ethylene glycol (EG) project. The registered capital of the temporary company is to be RMB2.5 billion, of which Tianye Group contributes 70%, or RMB1.75 billion in cash, and Xinjiang Tianye contributes 30% or RMB750 million in cash. The business scope of the temporary company includes EG, methanol and dimethyl oxalate.
Xinjiang Tianye belongs to the eighth division of Xinjiang Production and Construction Corps (XPCC). The company has formed a business structure centered around chlor-alkali chemicals and plastic water-saving equipment, supplemented by construction and installation, logistics and transport, according to industry analysts. It will enjoy good profits by having a listed company participating in the project, while using its own advantages, as well as those of its big shareholder, to make mutual progress.