Investment Project in Laiwu (5)-40 Thousand Tons per Year of ECH Project

Date: 2015-12-31, Source: Bureau of Commerce of Jining City, Total Visits :

Scale of Construction

40 thousand tons per year of ECH

Market Forecast

ECH is an important raw material and intermediate in the organic chemical industry, which is used as the major material to produce epoxy group and PR. It can be also used to produce glycerol, curing allyl rubber and resin with high intensity. ECH in China can’t meet its demand and needs to be imported a lot every year. A large number of downstream derivative products need to be imported, too. As estimated, in a few years, the ECH will keep increasing by 5% each year, and in 2015 the domestic demand will reach 0.49 million tons and in 2020, the demand will reach 0.68 million tons. So there’ll be a big gap between supply and demand. Moreover, with the development of automobiles, the demand of ECH will still increase. Because of the heavy demand of epoxy resin, it also promotes the demand of ECH. However, our domestic capacity and output can’t satisfy the actual demand. So we have to import every year and the import volume keeps increasing.

Content of Construction

The project is built in Jining Development Zone of Chemical Industry. High-temperature chlorination method is the most important industrialized production technology. And more than 90% in the whole world adopt this method. The feature of high-temperature chlorination method is that the process is flexible, technology is sophisticated and the operation is stable. Besides, it can also produce glycerol, chloropropene and other organic synthesis intermediate.

Relative Supporting Facility

Currently the supporting public works in the development zone can meet the need of construction.

Analysis of Investment and Benefit

The total investment is 0.65 billion RMB and the sales revenue per year will reach 0.46 billion after completed. So the profit is 70 million RMB per year, ROI is 11% and the payback period is 9 years (including 2 years of construction period).


The first-phase preparations are being made.

Ways of Cooperation

Joint venture, sole proprietorship or joint-stock system

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