I. Project Name
600,000 t/y Carbinol Project of Xianyang

II. Project Implementation Agency
Shaanxi Xianyang Chemicals Industry Co., Ltd. The company was founded in May 2006, with a registered capital of 400 million Yuan. It is a limited liability company funded by Shaanxi Provincial Investment Group. The business scope includes: production, wholesale, retail, procurement service, memorandum sale, power generation, heat supply and development of methanol and its ramification.

III. Project Description
Methanol project (600,000 tons/year) lies in Gongjiawan Chemical Zone, Weicheng District of Xianyang City. It is mainly to build the methanol production installations (annual output: 600,000 tons) and self-prepared power station (installed capacity: 25000 kW), including such production installations as coal gasification, transformation, purification, methanol synthesis and rectification, self-prepared power station, rail transport routes, storage and transportation facilities for raw materials and finished products, and water sources. The Project was kicked off in April 2007, and it is proposed to build up methanol production line (600,000 tons) once, and to put into operation in October 2009. At present, all examination and approval procedures such as record, environmental assessment and security assessment have been completed.
Production process mainly adopts coal, high-pressure coal water gasification, some sulfur-tolerant conversion, low-temperature methanol purification, super Claus sulfur recovery technology to produce methanol synthesis gas, and uses the advanced foreign methanol synthesis and rectification technology. After the Project is completed, the annual output will be 600,000 tons of methanol, together with sulfur, argon, oxygen and nitrogen.
Total investment of the project is about 2719.8211 million Yuan. The cooperation form: cooperation through transferring 49% shares or less.
If raw material coal is 230 Yuan/ ton, bunker coal 220 Yuan/ton, water 0.66 Yuan/ton, power price 0.4116 Yuan /kwh, the annual average total cost is 748.83 million Yuan. If methanol price is 2000 Yuan/ tons, after the project meets the production target, the sales income of 1231.72 million Yuan, annual average profit of 338.54 million Yuan and average profit after tax of 230.98 million Yuan will be realized. The return rate of investment is 12.04%, profit and tax rate of investment 17.18%. The whole internal rate of return of the whole investment (after tax) will be 12.96%.　

Contact Person: Zhang Meng
Telephone: 029-81008845
Fax: 029-81008842
E-mail: zhangmeng@sigconline.com