Rongsheng Petrochemical to Fund New 40m t/a Refinery of Zhejiang Petrochemical
Year:2017 ISSUE:15
COLUMN:ECONOMY AND BUSINESS
Click:301    DateTime:Aug.11,2017
Rongsheng Petrochemical to Fund New 40m t/a Refinery of Zhejiang Petrochemical

Rongsheng Petrochemical Co., Ltd. announced plans on July 10 to issue a maximum of 763m shares to its major shareholder, Rongsheng Holding and nine other specific investors through non-public offering, to raise no more than RMB6 billion for the Phase I 40m t/a integrated refinery project of Zhejiang Petrochemical Co., Ltd. (hereinafter referred to as Zhejiang Petrochemical). The major shareholder shall take a maximum of RMB600m shares, with a restricted stock trade period of 36 months, while nine other investors have a restricted stock trade period of 12 months.
The project will cost RMB173.1 billion and will be one of the largest privately owned refineries in China. Phase I will cost RMB90.2 billion and will create a 20m t/a oil refining capacity and capacity to produce 5.2m t/a aromatics and 1.4m t/a ethylene. A variety of other chemical products will also be produced – styrene monomer, polycarbonate, polyethylene and polypropylene. The first phase of the project is to be completed by the end of 2018, and the payback period (before tax) will last 7.24 years. Rongsheng Petrochemical Co., Ltd. owns 51% of Zhejiang Petrochemical.  
The project will help Rongsheng Petrochemical extend its PX-PTA-chemical fiber industrial chain upstream into the oil refining industry.