Hengyi Petrochemical to set up PTA & CPL projects

05 Jul '11

1 min read

Hengyi Petrochemical will be setting up a project for the production of Purified Terephthalic Acid (PTA) with an annual production capacity of 1.5 million tons. The project is estimated to generate sales revenue of 10.5 billion Yuan with nearly 1.27 billion Yuan of net profit.

Upon completion of the project in about two years' time, the PTA production capacity of the company's subsidiary Zhejiang Yisheng Petrochemical will increase to 2.56 million tons.

Hyengi has also announced setting up of a facility on 121,578 sq m of land for annual production of 90,000 tons of fibre. This factory will include two fibre factories, which will house five polyester filament production lines.

The company also plans to invest in two lines to produce caprolactam (CPL). Upon establishment, the overall CPL production capacity will increase to 100,000 tons. CPL project is likely to bring sales revenue of 3.86 billion Yuan, and 559.32 million Yuan of net profit.

To meet expenses of about three billion Yuan needed for these expansion plans, the company is going to issue 65 million shares at 46.4 Yuan per share in a private placement.

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