Urea Plant China XLX Fertiliser commissions 4th Urea Plant, 5th under Construction

China XLX Fertiliser announced that the commissioning phase of its fourth urea production plant has commenced. It is expected to start trial production this month and full operation next year. The Group’s aggregate annual urea production capacity will then surge 64 % or 800 000 t from the existing level, while its annual synthetic ammonia production capacity will add 450 000 t.

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Hongkong – The fourth urea plant will use sand coal as a major raw material and utilize a number of leading production technologies, including coal slurry gasification technology, steam-driven compression technology, ammonia waste treatment processes, low energy technology, frequency control and other environmental protection and energy-saving technologies for domestic coal and chemical processes.

Mr. Liu Xingxu, Chairman and CEO of the Group, commented, “When the fourth plant comes on stream, the Group will be equipped with annual urea production capacity of more than 2 million. Our production technology will thus be further enhanced and operating costs will be further cut. With greater economies of scale and cost efficiency, we are set to experience robust business expansion, which enables us to deliver better returns to shareholders. Meanwhile, we secure stable coal supply after the acquisition of a premier coal mine in Xinjiang. And our fifth plant in Xinjiang is currently under construction.”

China XLX Fertiliser, one of the largest coal-based urea producers in China, is mainly engaged in the production and sale of urea, compound fertiliser and methanol. Its current production capacity of urea, compound fertiliser and methanol is 1.25 million tonnes, 750 000 t and 200 000 t, respectively. The Group is developing its fourth urea plant in Xinxiang City, Henan Province. Upon its completion in the second half of 2013, the Group’s annual production capacity of urea will increase to over two million tonnes.

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