Huafon Chemical plans to invest and build PTMEG project

According to the announcement, Huafon Chemical will invest 2.04 billion yuan to build a 120kt/year of PTMEG spandex industry chain deepening project through full-capital company Huafeng Chongqing Biomaterials CO., Ltd. (hereinafter referred to as "Chongqing Materials").

The basic information of the investment target of the project:

1. Project name: annual output of 120000 tons of PTMEG spandex industry chain deepening project.

2. Project investment construction unit: Huafeng Chongqing Biomaterials Co., Ltd.

3. Project investment estimates and funding sources: the total is expected to be 2.04 billion yuan, the source of funds is self-raised funds, the final investment amount and construction period shall prevail after the implementation of the project.

4. The construction period of the project is expected to be 36 months (finally based on the actual progress of the project).

The implementation progress of the project will be timely adjusted according to market demand, operation and comprehensive argumentation of the board of directors, and disclosed in accordance with relevant laws and regulations.

5. Project content and scale: 120kt/year PTMEG plant; supporting process equipment, public works and auxiliary facilities.

6. Process technology: to prepare PTMEG by cyclization dehydration of BDO.

7. Project location: Baitao Chemical Industry Park, Fuling District, Chongqing.

8. The payback period of the project: the total investment is 2.04 billion yuan, and the static investment payback period after the completion of the project is 4.8 years (excluding the construction period).

As the project is still in the early planning stage, there is uncertainty in the implementation of the project and the benefits need to be further demonstrated. Changes in the market lead to the uncertainty of project benefits, so investors are invited to pay attention to the investment risk.