Securities code: Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273) stock abbreviation: Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273) No.: 2022018 Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273)
Announcement on project investment
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
The investment of this project is to invest in the construction of 300000 t / a vinyl chloride (VCM) phase II project and 300000 t / a polyvinyl chloride (PVC) phase II project;
Investment amount: the investment amount of 300000 t / a vinyl chloride (VCM) phase II project and 300000 t / a polyvinyl chloride (PVC) phase II project is 100000 yuan respectively;
The 16th meeting of the 9th board of directors of Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273) (hereinafter referred to as ” Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273) ” or “the company”) deliberated and adopted the proposal on investment and construction of 300000 t / a vinyl chloride (VCM) phase II project and the proposal on investment and construction of 300000 t / A polyvinyl chloride (PVC) phase II project respectively. The specific situation is hereby announced as follows:
1、 Overview of 300000 t / a VCM phase II project
The company plans to invest in the construction of 300000 t / a vinyl chloride (VCM) phase II project. After the completion of the project, all chlorine gas from the existing chlor alkali plant will be consumed, so as to further give play to the advantages of circular economy, reduce production costs and improve the profitability of the company.
1) Basic information of the project
1. Project Name: 6 Shenzhen Center Power Tech.Co.Ltd(002733) 00000 t / a vinyl chloride (VCM) phase II project
2. Project scale and construction content: 300000 t / a vinyl chloride (VCM) main unit, supporting utilities and auxiliary facilities, including power supply and distribution room, cabinet room, water supply and drainage and fire water system, HVAC, general layout transportation, external power supply line and road lighting in the plant, telecommunications in the whole plant, etc.
3. Project investment: the total investment of the project is planned to be 1 million yuan.
4. Project safety and environmental protection: the project adopts mature and reliable process technology, implements the environmental protection policy of “focusing on source treatment, giving consideration to end treatment and waste recycling”, strictly implements relevant environmental protection standards and regulations, takes various effective measures, implements comprehensive cleaner production in the production process, avoids and reduces pollutant emission, and effectively saves water resources.
2) Background of project construction
Since its establishment, the company has been committed to the construction of the industrial chain of circular economy. With cogeneration and steam heating as the link, the products of “thermoelectric chlor alkali sulfuric acid sulfonated medicine” and “thermoelectric chlor alkali fatty alcohol (acid)” have been connected in series into an integrated circular economy industrial system, realizing the complete local transformation and efficient utilization of resources and energy. The 300000 t / a dichloroethane and vinyl chloride project invested by the company has been successfully put into operation in the middle of 2021. In order to further expand the product scale, reduce the product cost and consumption, and ensure the complete on-site conversion of chlorine in the company’s chlor alkali unit, it is planned to introduce the same process technology and key equipment and expand the 300000 t / a vinyl chloride (VCM) phase II project on the basis of the existing 300000 t / a polymer unit, Supporting the production of vinyl chloride raw materials for the proposed 300000 t / a polyvinyl chloride (PVC) project, further extending the chlor alkali industrial chain to produce polyvinyl chloride (PVC) products, and forming a “thermoelectric chlor alkali vinyl chloride (VCM) – polyvinyl chloride (PVC)” circular economy product chain.
3) Investment scheme and evaluation
The construction period of the project is 24 months, and the estimated new investment is no more than 1 million yuan. The source of funds is self owned funds and bank loans. After the project is completed, it is estimated that the annual sales revenue will increase by 1579.4 million yuan (including tax), the average annual after tax profit will be 74.15 million yuan, and the average annual total profit and tax will be 122.67 million yuan.
4) Impact on the company and risk analysis
The project can extend the company’s chlor alkali industrial chain, form a “thermoelectric chlor alkali vinyl chloride PVC” circular economy product chain, completely convert the chlorine products of chlor alkali units on site, reduce the risk of chlorine transportation, improve the scale of vinyl chloride products and reduce production costs, ensure that the company’s Circular industrial chain is not affected by the annual maintenance of units, further improve the company’s comprehensive economic benefits and improve the company’s overall strength and core competitiveness.
The project has market risks such as future technological progress, intensified industrial competition, price fluctuation of energy and raw materials and uncertainty risks such as administrative approval. Please pay attention to the investment risks.
The investment proposal of the project needs to be submitted to the general meeting of shareholders of the company for deliberation.
2、 Overview of 300000 t / a polyvinyl chloride (PVC) phase II project
In order to further expand the scale of the company’s PVC products, enrich product brands and further improve product quality, the company plans to invest in the construction of 300000 t / a PVC project to produce PVC products. After the completion of the project, it will give further play to the advantages of circular economy, expand the scale and brand of existing PVC products, reduce production costs and improve the profitability of the company.
1) Basic information of the project
1. Project Name: 300000 t / a polyvinyl chloride (PVC) project of Zhejiang Jiajia Xingcheng new materials Co., Ltd. 2. Project scale and construction content: 300000 t / a polyvinyl chloride (PVC) main device, supporting utilities and auxiliary facilities, including circulating water station, distribution room, cabinet room, packaging plant, warehouse, centrifugal mother liquor treatment, water supply and drainage and fire water system, external power supply and material pipeline to battery limit, road Lighting and plant greening, etc.
3. Project investment: the total planned investment of the project shall not exceed 1 million yuan.
4. Project safety and environmental protection: the project adopts mature and reliable process technology, implements the environmental protection policy of “focusing on source treatment, giving consideration to end treatment and waste recycling”, strictly implements relevant environmental protection standards and regulations, takes various effective measures, implements comprehensive cleaner production in the production process, avoids and reduces pollutant emission, and effectively saves water resources.
2) Background of project construction
Since its establishment, the company has been committed to the construction of the industrial chain of circular economy. With cogeneration and steam heating as the link, the products of “thermoelectric chlor alkali sulfuric acid sulfonated medicine” and “thermoelectric chlor alkali fatty alcohol (acid)” have been connected in series to form an integrated circular economy industrial system, realizing the local transformation and efficient utilization of resources and energy. Since the 300000 t / a dichloroethane and vinyl chloride project and 300000 t / a functional polymer material project were completed and put into operation in 2021, the products have been welcomed by market customers and become a new profit growth point of the company.
In order to consume all the remaining chlorine in the company’s chlor alkali plant, further expand the scale of PVC products and enrich product brands, the company plans to introduce international advanced technology and key equipment, further build a 300000 t / a PVC project, extend the chlor alkali industrial chain, produce PVC products, and form a “thermoelectric chlor alkali vinyl chloride (VCM) – polyvinyl chloride (PVC)” circular economy product chain.
3) Investment scheme and evaluation
The construction period of the project is 24 months, and the estimated new investment is RMB 1 million yuan. The source of funds is self owned funds and bank loans. After the project is completed, it is estimated that the annual sales revenue will increase by 2205.2 million yuan (including value-added tax), the average annual after tax profit will be 190.25 million yuan, and the average annual total profit and tax will be 305.78 million yuan.
4) Impact on the company and risk analysis
The project can extend the company’s chlor alkali industrial chain, form a “thermoelectric chlor alkali vinyl chloride PVC” circular economy product chain, reduce production costs, further improve the company’s comprehensive economic benefits and improve the company’s overall strength and core competitiveness.
The project has market risks such as future technological progress, intensified industrial competition, price fluctuation of China’s energy and raw materials and uncertainty risks such as administrative approval. Please pay attention to the investment risks.
The investment proposal of the project needs to be submitted to the general meeting of shareholders of the company for deliberation.
It is hereby announced.
Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273) board of directors March 30, 2022
