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Letter of Intent for Enterprise-establishing Cooperation

Yanzhou Tiancheng Chemicals Co., Ltd. is located in Chemical Industry Park, Economic Development Zone, Yanzhou District, Shandong Province£¬which is a high-tech enterprise integrating industrial production, trading and research. It mainly produces hundreds of varieties covering accessory ingredients for papermaking chemicals, printing and dyeing, spinning and rubber & plastic, and water treatment chemicals, pharmaceutical intermediates, IT optics and aerospace materials, sanitary pesticides, etc. The products are distributed to various regions throughout the country, and as far as North America, Europe, and Japan, Korea and Southeast Asian countries and districts.
Our company has obtained multiple national invention patents, with well-developed production process and advanced technology. And we are one of the national standards drafting units of papermaking chemicals AKD, whereby the output, quality and technique of AKD powder are all world leading. The company’s proprietary intellectual property rights - glycerin-based ECH production process, is the most competitive production technique of producing fine chemical engineering products with biomass resources as a substitute to petroleum. Epoxy resin, bio-based plasticizer and so on are innovative technological products researched and developed by Tiancheng Chemicals independently. DCS automatic control production processes enables more stabilized product quality, which completely achieves advanced international level.
Since the establishment of Tiancheng, we have cooperated with US Hercules, Finland Kemira, and other notable brands and companies successively. And we have been keeping long-term business relationships with Japan Mitsui, Showa Denko, SEIKO PMC, ARAKAWA Chemical, Korea Samsung, AkzoNobel Eka and so on.
The newly built 60,000 tons/year AKD and 100,000 tons/year glycerin-based ECH project is a major project of “Hongkong Enterprise-establishing Week” in Shandong Province, has gained broad attention and substantial support from provincial, municipal, regional levels of leaders, and is also a major industrial project in Yanzhou District of Jining City. Overall project planning includes 3 phases of investment and establishment, where, the first phase (2014~2016) investment is about RMB 1.6 billion, including 40,000 tons phosgene, 70,000 tons acyl chloride, 60,000 tons AKD and phosgenation series products, 150,000 ton chlor-alkali, 100,000 tons ECH, 50,000 tons epoxy resin, 50,000 tons biological plasticizer and supporting thermoelectricity facilities; The second phase planning projects include 200,000 tons oilation, 100,000 tons glycerin refining and product extension, expansion of 150,000 tons chlor-alkali, 100,000 tons ECH and supporting facilities, epoxy resin, oil paint and coating as well as essence, perfume, daily chemicals, pharmaceutical intermediates, agrochemical intermediates and active compound, food additives, IT optics and aerospace chemicals, radioactive film, and so on; the third phase includes polycarbonate composites, aramid fiber, PC polyester chip advanced materials and so on.
With substantial support and focus of various levels of governments, the first phase of new development project has completed construction, installation and single & overall debugging of main production facilities and utilities of AKD, phosgene, acyl chloride, which will be put into commissioning production soon. During the project development process, we consistently adhere to high standard, high starting point, and high configuration.
This project is designed by the former Sixth Design Institute of Ministry of Chemical Industry, and is equipped with the most advanced technology and equipments, combined with our years of production and management experiences in phosgenation products and fine chemical synthesis, which ensure the safe and environment protective operation of the project after put into production. Currently, all administrative examinations and approvals required for relevant chemical project development by ministries and commissions, province and municipality levels have been acquired completely pursuant to the latest and highest national standards.
All infrastructure facilities and designs of Yanzhou fine chemical industry park leaded by Tiancheng Wanfeng project can meet various chemical industry requirements, and can customize production fundamental facilities on basis of particular enterprise requirement. Besides, the services provided by industry park for coming chemical enterprises are throughout the whole production process.
We plan to attract domestic and foreign capitals through multiple financing measures such as technology investment, fixed asset investment and mortgage loan, credit loan and hypothecation loan and so on, and through the capital linkage to achieve the objective of “advantageous integration, powerful combination, standardized operation, mutual development” between investors and cooperators, as per modern corporate enterprise systems and financing standards.
We are looking forward to work with cooperative friends from domestic and foreign to jointly develop and create a bright future!
Yanzhou Tiancheng Chemicals Co., Ltd.