China to establish first coal-olefin industry

Sino Biopharmaceutical Limited announced on September 3 that it will establish China's first coal to olefin industry item with the provincial government in Shaanxi. Together they will invest a total of five billion yuan in the industry.

Coal can be made into low-carbon olefin, which is a combination of ethane and propylene. Modern technology greatly reduces the cost of the congener product, which is usually extracted from oil. According to Xie Bing, the president of the directorate of Sino Biopharmaceutical Limited, this is of great economic significance with the price of oil continually rising,

Zheng Da Precision Chemical Industry Company, a subsidiary company of Sino Biopharmaceutical Limited, has signed an agreement establishing the joint venture with Shaanxi Coal Chemical Industry Group Co., Shaanxi Provincial Investment Group Co. and Shaanxi Xinxing Coal Chemical Industry Limited, all of which are owned by the Shaanxi Provincial Government. The low-carbon olefin will be produced in Yulin city in Shaanxi Province. The company has registered capital of 1.75 billion yuan and is expected to begin operations in the first quarter of 2007.

Sino Biopharmaceutical Limited is a drug company. Their headquarters are in Hong Kong but they have several subsidiary companies on the Chinese mainland. The company plans to be listed in Hong Kong stock market soon.

Forbes magazine in the US chose Sino Biopharmaceutical Limited as one of the best companies with capital of less than US$1 billion in the Asia Pacific Region in 2005.

By People's Daily Online