(China5e, Sep 11, 2006) Sino Biopharmaceutical (1177), a Hong Kong-based company that makes and distributes medicines and drugs in China, said it signed an agreement to establish a 5 billion yuan (HK$4.88 billion) coal-to-chemicals project to meet rising demand in the nation.

Sino Biopharmaceutical, Shaanxi Coal Chemical Industry, Shaanxi Province Investment Group and Shaanxi New Coal Chemical Science and Technology Development will form the venture in the city of Yulin in northwestern Shaanxi province, the Hong Kong company said in a statement Sunday. 

The plant will produce chemicals such as ethylene and propylene from coal, it said.

Record crude oil prices are spurring China to build plants that can turn some of its coal reserves, the world's third- largest, into fuels and raw materials for making plastic. South Africa's Sasol, the world's biggest producer of motor fuel from coal, said in June that China has the potential for at least 12 coal-to- fuels plants.

Registered capital of the venture will be 1.75 billion yuan, of which 750 million yuan will come from Sino Biopharmaceutical and 630 million yuan from Shaanxi Coal Chemical, the statement said. The balance will be provided by the other partners, it said.

The plant is expected to start operating in the first quarter of next year, according to the statement.

Source:China5e
tag:China energy coal