Lurgi's key technology for propylene plants in China

18 Dec '06

3 min read

Lurgi AG received two contracts from China for the first commercial-scale plants based on its technology for the production of plastics from coal. The total capital investment amounts to more than one billion euro per project, Lurgi's contract value alone exceeds the 100 million euro mark by far.

Both projects for building the world's largest propylene plants comprise the technology license, engineering services as well as the supply of special equipment. “The applica-tion in China of Lurgi's key technology allows, for the first time, the commercial production of plastics directly from coal. This is the breakthrough for the industrial application of our technology."

"It is of high strategic value mainly for countries like the United States, China or Australia which themselves have vast coal reserves”, commented Lurgi's Executive Board Chairman Klaus Moll on the occasion of a press conference in Frankfurt.

Based on the highest volume of new orders ever in the company's history, of more than 1.3 billion euro so far in this fiscal year, which is twice as much as a year earlier, Lurgi is bound to achieve the turnaround in 2006. For 2007, the plant engineering company is heading for a distinct increase in earnings.

Rising oil prices, rapidly growing demand for energy and gigantic domestic coal reserves make the utilization of coal for the production of chemicals and fuels a central strategic necessity for China. The Lurgi MegaMethanol technology provides the feedstock for the latest process developed to commercial maturity by Lurgi, i.e. MTP. MTP complexes constitute the first step on the way to diversification into the field of coal to chemicals and fuels in China.

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