600,000 Tons Acetic Acid Project

1. Introduction

Acetic acid also refers to as ethanoic acid, is one of the important organic petro-chemical product in Oil & Gas industry. Acetic acid is widely used in many industries. Commercially it is used in the manufacturing of Vinyl acetate monom (VAM), purified terephthalic acid (PTA), acetic anhydride, polyvinyl alcohol, ester and so on. Acetic acid is also an important raw material for synthetic fibers, adhesives, medicines, dyes and pesticides. Besides that, acetic acid is also used as solvent in manufacturing plastic rubber and printing.

Project main function: Extending C1 production line, and using location advantage to developing characteristic fine petrochemical products, diversifying the refining production line, establishing a whole supply chain for upstream and downstream in oil and gas industry.

2. Location

This 600,000 tons acetic acid refinery line will be located at oil and gas refining industrial park in Yangpu Economic Development Zone (YEDZ). Planed occupied an area of 100,000 square meters with 180 employees. According to domestic market demand and raw material such like methanol supply, this refinery line’s production is 600,000 tons/year, with capacity of 8,000 hours/year. This 600,000 tons/year acetic acid production will be apply to downstream vinyl acetate (VCA), acetic ester and purified terephthalic acid (PTA) production lines.

3. Investment plan

Project investment capital will be 2.6 billion RMB witch included construction investment 2 billion RMB. Construction duration will be 24 months.

4.Target cooperation partner

Both domestic and international petrol-chemical companies.

5. Advantage

★Hainan Province is located in the center of East Asia and Southeast Asia. It is the junction between China and Southeast Asia. It is also close to the main international shipping route. It is an important strategic fulcrum of the "The Belt and The Road". It has geographic advantages such as coasts, borders, and islands. Hainan is the important transportation hub of Southeast China. Hainan Free Trade Port will be an new opening up zone to Asia-pacific area. It provides good location conditions for the construction of new petrochemical projects.

★With more than 20 ports within a range of around 200 nautical miles, Yangpu Economic Development Zone (YEDZ) lies at the heart of the West Beibu Gulf and is adjacent to the ASEAN Free Trade Area. It is a deep-water port in the Beibu Gulf closest to major international routes, and is a petrochemical center and an oil & gas storage base in China closest to oil and gas resources in the South China Sea and oil resources in the Middle East. It is also the first stop for oil and gas from the Middle East and Africa to enter China, and an important strategic pivot of the 21st Century Maritime Silk Road.

★Yangpu is a deep-water port with access to major East Asian and Southeast Asian sea routes. As Cosco Shipping Lines etc have opened liner routes in Yangpu Economic Development Zone, cargos can reach 14 domestic ports and 8 foreign trade ports.

6. Project planning and policy supporting

（1）Policies Offered by Hainan Provincial Government

★The YEDZ Development Regulation authorizes YEDZ, as a municipal-level district, to develop a variety of business promotion policies.

★Measures Supporting the Development of YEDZ (2011-2030) empowers YEDZ to :

(i) develop, revise, prepare and approve general urban plans, industrial plans and specific regulations;

(ii) review and approve the use of land, sea, forest or island for various projects; and

(iii) approve provincial-level environmental assessment reports and pollution control permit for construction projects. In addition, one-stop government services are provided in YEDZ.

Yangpu Economic Development Zone Planning Land Map

Land information

According to the Yangpu Economic Development Zone planning outlook (2011-2030), 600,000 tons acetic acid project meet the Yangpu industrial planning. Project location area is used for three types of industrial land. The construction land of the project complies with the detailed regulatory planning of Yangpu Economic Development Zone. The current land property rights in the site are clear and the amount of demolition is limited. This new acetic acid refining line can be started shortly, and have a certain scale of land for long-term expansion.

(2) Supporting facilities

Strong industrial foundation; relying on the advantages of the wharf to build logistics support; convenient and efficient transportation network; supporting public pipe corridors, heating centers, sewage treatment plants, hazardous waste disposal centers in the park, etc., to meet the public works required by the project; living facilities Complete supporting facilities to create a new coastal industrial city that is livable and suitable for business.

7. Contact information

Yangpu Economic Development Zone

Contact phone number: 0898-28826502，0898-28810168