800,000-ton olefin project breaks ground in Ordos
investordos.goinnermongolia.com.cn | Updated: Jul 18, 2024

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The 800,000-metric-ton olefin project breaks ground in the Dalad Economic Development Zone in Ordos. [Photo provided to investordos.goinnermongolia.com.cn]

Inner Mongolia Rongxin Chemical Co recently launched construction on its annual 800,000-metric-ton olefin project in the Dalad Economic Development Zone in Ordos. This initiative is set to significantly extend the coal chemical industrial chain in Dalad Banner, advance industrial clustering, and enhance industrial efficiency and quality.

The olefin project, with a total investment of 9.83 billion yuan ($1.35 billion) and occupying an area of 1,887 mu (125.8 hectares), includes new facilities such as an 800,000-ton/year methanol-to-olefins (MTO) unit, a 400,000-ton/year polyethylene unit, a 400,000-ton/year polypropylene unit, a 15,000-ton/year 1-butene unit, and supporting infrastructure.

Using methanol as feedstock, the project employs MTO technology to produce polymer-grade ethylene and propylene monomers, which are then polymerized to produce high-density polyethylene and high-performance polypropylene products. Additionally, it will yield by-products such as 1-butene, isobutane, C5+, and MTBE.

The project is expected to begin operating in 2026 and achieve an annual industrial output value of 6.67 billion yuan and an added value of 2.08 billion yuan.

Inner Mongolia Rongxin Chemical Co, a coal conversion enterprise under Shandong Energy Group, was established in the Dalad Economic Development Zone in 2009.

With a total investment of 13 billion yuan to date, the company has already completed Phase I of a 900,000-ton/year coal-to-methanol project and Phase II of a 400,000-ton/year coal-to-ethylene glycol project.

Since its commissioning in 2014, the company has produced a cumulative total of 14 million tons of major chemical products, including methanol and ethylene glycol, generating sales revenue of 26 billion yuan and paying 3.76 billion yuan in taxes.

The company has also provided employment for 1,200 individuals and received accolades such as the "2016-2017 National Quality Engineering Award" and the Inner Mongolia Autonomous Region's "May 1 Labor Certificate".


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