Hangyang keeps momentum of investment in the gases industry
Announcements from HangYang recently revealed that the company has approved investments in two new gas projects in Guiyang city of Guizhou province and Fuyang in Hangzhou city, Zhejiang province.
Hangyang and Hangzhou Best Gas Co. Ltd. will establish a joint venture in Fuyang of Hangzhou city to provide oxygen, nitrogen and argon gases to Zhejiang Heding Copper Co.Ltd with a new set of air separation plant of 17,500 m3/h.
The total investment is estimated at RMB 160m of which the equipment cost is RMB 121m, gasworld China understands.
The plant is scheduled to put into commercial operation by 15th July 2012. The registered capital of the joint venture is proposed to be RMB 60m and Hangyang will have 90% of the shares.
In addition to supplying gas to the copper plant, the ASU will also sell the surplus production in liquid form to the market. Estimated annual sales are more than RMB 80m, while net profit will reportedly reach more than RMB 10m.
Hangyang will also invest and set-up a wholly owned subsidiary, Guizhou Hangyang Gases Co. Ltd in Guiyang, Guizhou province to supply oxygen, nitrogen and argon to Shougang Guiyang Special Steel Co., Ltd. (Shou-Gui Special Steel). Guizhou Hangyang will invest in two new sets of 17,000 m3/h air separation plants, with total project investment of RMB 2.87 bn.
According to the contract, the first plant is scheduled to start operation on 31st December 2012, and the second plant on 30th June 2013. Annual sales of more than RMB 170m and net profit of RMB 18m are expected.
And in Zhejiang province, Quzhou Hangyang Gases Co. Ltd, a wholly-owned subsidiary of Hangyang established in June 2010, will require an additional capital investment of RMB 60m for project expansion. Quzhou Hangyang intended to construct a 43,000 m3/h ASU, a 26,000 m3/h ASU and a 200 tpd liquefier. It is now changed to two new sets of 40,000 m3/h ASU and a 510 tpd liquefier. The revised production capacity is to meet the gas demand of the new adipic acid project of Quzhou Shuyang Chemicals.
Hangyang had earlier announced its revenue for the first half of 2011; total revenue was RMB 1.86bn, an increase of 23.82% compared with the same period last year. On the gas business side, since a number of gas supply projects have started commercial operation, the gas revenue has substantially increased 188.36%, to reach nearly RMB 110m.