Keyuan Petrochemicals Inc

Keyuan Petrochemicals Inc General Information

Description

Manufactures and supplies petrochemical products intended to serve the oil industry. The company through its PRC operating subsidiaries; Ningbo Keyuan Plastics Co., Ltd , Ningbo Keyuan Petrochemicals Co., Ltd, Keyuan Synthetic Rubbers Co., Ltd & Guangxi Keyuan Co.,Ltd are engaged in the manufacture and sale of petrochemical products in the PRC. Its operations include (i) a production facility with an annual petrochemical production capacity of 720,000 metric tons (MT) of a variety of petrochemical products, (ii) facilities for the storage and loading of raw materials and finished goods and (iii) a manufacturing technology that can support its manufacturing process with relatively low raw material costs and high utilization and yields, all of which are led by a management team consisting of petrochemical experts with proven track records from some of China's largest state-owned enterprises in the petrochemical industry. In January 2012, it signed a cooperation agreement with Fangchenggang City to build a new petrochemicals production facility in Guangxi Keyuan New Materials Industrial Park, in Guangxi Province. The total investment amount to construct this new production facility is RMB 12.8 billion (approximately USD $2.02 billion). It commenced pre-construction activities in February 2012 and intends to finish the initial stage of construction and begin operations by the end of 2013. However, the timeline is subject to revision pending the status of project financing. This new production facility, as a part of its expansion plan, will improve its competitive position by extending and expanding its supply chain and manufacturing base. Once the facility is fully operational, it is expected to have annual production capacity of 400,000 metric tons of Acrylonitrile Butadiene Styrene (the "ABS"). The company plan to fund the construction and operation of the new production facility through outside financing. If such financing is not available on terms acceptable to it, construction of this facility will be delayed until appropriate financing is available. According to the cooperation agreement, the government of Fangchenggang City will provide the land use right for the facility. It manufactures and supplies a variety of petrochemical products, including BTX aromatics, propylene, styrene, LPG, MTBE and other petrochemicals.