According to a recent announcement of the board meeting of Hangzhou Hangyang, the leading independent enterprise in the manufacturing of air separation plants in China is to set-up a joint venture company in Guangxi province, China.
The preliminary name of the company is Guangxi Hangyang Jinchuan Xinrui Gases Co Ltd (Guangxi), and will be established by three companies, namely Hangzhou Hangyang, Guangxi Jinchuan Non-ferrous Metals Co. Ltd and Zhejiang Xinrui Air Separation Equipment Co. Ltd.
The planned registered capital of Guangxi is RMB 135m, of which Hangyang has a share of 51% whilst Jinchuan and Xinrui will have 34% and 15% respectively.
The first project of the joint venture is to set up two sets of 120 tpd air separation units (ASU) in the plant area of Guangxi Jinchuan Non-ferrous Metals, in the Non-ferrous Metals Processing Zone in Fangcheng Port of Guangxi province. The two ASUs will deliver industrial gases to Jinchuan Non-ferrous Metals and the gas supply agreement has been finalised already, gasworld China understands.
Total investment in the project is estimated to be RMB 428.9m.
Guangxi Jinchuan, a subsidiary wholly owned by Jinchuan Group, was established in June 2010. The company has a 600,000 tpa copper smelter and associated equipment, and will also produce 110,000 tonnes of products containing nickel, together with the deep processing of copper, nickel and chemical products.
The total planned investment in the enterprise is RMB 30m and it is thought that the company will become a global leader in nickel and copper smelting production.
The other partner of the newly announced joint venture is Zhejiang Xinrui, based in Deqing Industrial Park in Huzhou city of Zhejiang province. The company is also in the business of manufacturing air separation equipment, including cryogenic liquefaction equipment, cryogenic storage equipment and packing materials, and offers installation and maintenance services too.
Meanwhile, Hangyang also plans to set-up its third gas company in Jilin province. The company is a joint venture of Hangyang and the shareholders of Boda Biochemicals.
Other shareholders are also the Managing Director and General Manager of Boda. The company will initially be named as Jilin Hangyang Boda Gases Co. Ltd.
The new enterprise will build a 100,000 tpy carbon dioxide recovery plant and produce food grade carbon dioxide for the market. The source for this will be the waste gas from the fermentation process of the bio-ethanol production of Boda Biochemicals. Total project investment is estimated at RMB 36m.
The registered capital of Boda Gases is planned to be RMB 15m and Hangyang’s share is RMB 10m, with the balance equally split between the other two shareholders.
Furthermore, the wholly owned subsidiary of Hangyang in Jilin, Jilin Jingkai Hangyang Gases Co. Ltd, has signed an industrial gas supply agreement with Jilin Zhongxin Chemicals Group Co. Ltd to build an ASU of 400 tpd. The total investment in the project will be RMB 141m and the plant will be built within the plant area of Jilin Jingkai Gases.
Hangyang is thought to be taking an aggressive approach to its gas business development, with many projects in progress and on the drawing boards. It is expected, gasworld China understands, that the revenue from its gas business could match up with the company’s equipment sales in five to six years time.