Caprolactam production project with a capacity of 30000t/a.

Priority Project for Cooperation from Zibo City

1. Project name and construction scale

Caprolactam production project with a capacity of 30000t/a.

2. Brief introduction to project unit

Shandong Dacheng Chemical Group Co., Ltd. is an important group company of China engaging in pesticide, chemical and chemical fibre productions. The company is one of the 520 corprations specially fostered by the state and one of the 136 major corporations set for priority development by Shandong Province. As a listed company, Shandong Dacheng Pesticides Co., Ltd. is the core enterprise within the corporation. The corporation has a total asset of 1.6 billion yuan and currently has a staff of 5500 persons, including 1200 engineering and technical personnel. In 2004, the corporation fulfilled a total production value of 1.2 billion yuan. The corporation is listed as one of China’s Top 500 Chemical Enterprises. Its “Zhibao” Brand has been appraised as the famous trademark of Shandong Province for three consecutive times. Its pesticide products include insecticide, germicide, weedicide, plant growth regulator and biopesticide, totaling 5 major series and more than 40 product varieties. It produces 35,000t pesticides (as 100% concentration) per year. It also produces more than 20 varieties of pesticide intermediates and other chemical products. Its annual caustic soda output is 140,000t and its annual chemical products output is more than 200,000t.

3. Project content and construction condition

As an important chemical fibre imtermediate, caprolactam is mainly used for production of nylon-6 among many other applications. China’s dependency on import has always maintained around 60%, and appears at high growth rate. In 2002, the global production capacity reached 3.70 million tons, and the supply shortage in Asia region (including China) was 600,000t/a. The project has a broad market prospect. Technology and some equipment will be introduced for this project. Other than new plant buildings to be built, DCS system and advanced analytic instruments will be installed to improve the automation level. A 30000t/a production facility is planned to be built between 2006 and 2008 for large-scale production. 

4.       Total investment and source of funds

Total investment of the project is 20.63 million US dollars. Self-raised fund or joint-venture.

5. Market and economic benefit analysis

Chemical fibre intermediate. A shortage of 600,000t/a in Asia. Broad market prospect. The annual sales income is 270 million yuan and the return on investment is 35%.

6. Means of cooperation

Joint-venture or cooperation

7. Means of contact

Company address: 25 Honggou Road, Zhangdian District, Zibo City, Shandong Province

Contact person: Wang Xin 

Contact Tel: 0533-2111999-6791    

Fax: 0533-2113511  

E-mail: dcnywl@shandongdacheng.com