Xindu Chemical plans to build 1 million tons of original salt project

Chengdu Xindu Chemical Industry Co., Ltd. announced today its announcement on the preliminary work for the construction of a 1 million-ton original salt project in Yingcheng City. Yingcheng Chemical or its wholly-owned/controlled subsidiary plans to invest 1 million tons of raw salt in Yingcheng City. The estimated investment is 650 million yuan and the construction period is 20 months.

According to the announcement, Xindu Chemicals established a complete salt-alkali-fertilizer industrial chain in Yingcheng City. When the fund-raising project is completed, the demand for salt in the industrial chain will reach approximately 720,000 tons. The company has built an annual output of 20 in Yingcheng City. The 10,000-ton salt production line is currently undergoing a technical transformation of 300,000 tons per year. The wholly-owned subsidiary of the company Yingcheng Xindu Chemical Co., Ltd. (hereinafter referred to as “Yingcheng Chemical”) holds 96.55% of the existing salt production capacity of Xiaogan Guangyuan Huayuan Salt Co., Ltd. (hereinafter referred to as “Guangzhou Huayuan”). Only 800,000 tons, the existing raw salt production capacity can no longer meet the requirements of the joint alkali production capacity, salt production capacity, industrial customers and exports.

Xindu Chemicals stated that the company currently has the "five-effect" evaporation technology for the production of raw salt and the salt-alkali-fertilizer industry synergy, which can guarantee a very cost-competitive advantage for the new construction project. According to experts' assessment, according to the calculation of the production cost and sales price of Guangshen Huayuan in 2010, the internal water and electricity, logistics and wet salt drying industries are considered to be synergistic. It is expected that the sales revenue will reach 320 million yuan and the net profit will reach 7000 after reaching production capacity. Ten thousand yuan.

It is understood that in 2010, Guangling Huayuan delisted and obtained the prospecting right within the 4.41 square kilometer of the Xitian Village minefield salt mine in Yingcheng City. The current exploration work has been completed and the proven reserves are 220 million tons. The company is actively promoting Processing related procedures for mining rights, resources can guarantee an additional 1 million tons of production capacity.

The original salt project plans to select 400 acres of industrial land east of the Saltwater River, south of Puyang Avenue, west of Liuyang Primary School, and north of Hanyi Highway as the construction land for the original salt project. As there are small enterprises and residents living in this project site, it will take 12 months to relocate, and the total cost of relocation is expected to be 300 million yuan. The company negotiates with the People's Government of Yingcheng City. If the company chooses this area for project construction, the government will bear 60% of the relocation costs, and the company will bear 40% of the relocation costs. According to calculations, the original salt project will increase the cost of packaging, transportation, loading and unloading, drying, electricity, water and other thermal energy, and resource sharing and reuse for the supply of city chemical raw materials, which will save costs by 12 million yuan, and deduct 2.4 million yuan. After the amortization cost, the original salt project can save 9.6 million yuan in cost per year.

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