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Wison Engineering signs new engineering contract for Erdos Jinchengtai coal-to-methanol project; commercializing methanol-to-olefins

Wison Engineering Services Co. Ltd., together with its subsidiaries, announced that Wison Engineering Ltd., an indirect non-wholly owned subsidiary of the Group, has been a contract for the engineering of Erdos Jinchengtai coal-to-methanol Project (Phase II) for Erdos Jinchengtai Chemical Co., Ltd.

Wison Engineering will partner with Erdos Jinchengtai Chemical Co., Ltd. for the second time at the Jinchengtai coal-methanol project, marking a milestone for Erdos Jinchengtai Chemical Co., Ltd. to achieve its strategic transformation into a coal-to-chemical business.

Prior to this engagement, Wison Engineering undertook the basic design, detailed design and project management for all production facilities, utilities and ancillary facilities of the production plant while acting as a general contractor for the Jinchengtai cal-to-methanol Project (Phase I).

At the end of December 2012, the company successfully completed delivery of Phase I, which commenced production of up-to-standard methanol products in May 2013. Pursuant to the contract, the engineering of the Project (Phase II) will be completed in the third quarter of 2014.

MTO start-up. Several days prior to the Erdos Jinchengtai announcement, Wison the successful initial start-up of its designed methanol-to-olefins (MTO) plant featuring the its proprietary technology. The plant, designed by Wison Engineering Ltd., an indirect non-wholly owned subsidiary of the Group, is located in the Nanjing Chemical Industry Park.

The plant has successfully produced qualified ethylene and propylene products which meet the requirements set for polymer products, with a passing rate of 99.98% and 99.8% for ethylene and propylene products respectively, marking the first commercialization of Wison Engineering’s olefin separation technology for MTO plants, and also demonstrating another successful commercialization case of China’s coal-to-olefins technology, which will facilitates the coal-to-chemical industry development roadmap in China.

The Wison Engineering olefin separation technology featured in the MTO project utilizes Wison’s proprietary “pre-cutting + oil absorption” technology, which reduces energy consumption and lowers investment costs while also improving the olefin recovery rate, allowing for more stable production and bringing longer operating cycles. This technology broke the bottleneck in the technological difficulties that existed in the domestic industry; hence, the China National Petroleum & Chemical Planning Institute selected it to be the recommended technology for the “Twelve-Five Coal-to-Olefins Upgrade Demonstration Project”, making it one of Wison Engineering’s core technologies.

The close cooperation between Wison Engineering and Honeywell’s UOP on the technological front has pushed forward the development of domestic MTO technology and the upgrading of the modern coal-to-chemicals industry. Since its development in 2007, Wison Engineering’s separation technology in MTO plant has obtained four domestic invention patents and one invention patent in Indonesia. The technology has been adopted by enterprises such as Shandong Yangmei Hengtong Chemicals, Shenhua Xinjiang New Materials, Jiangsu Sailboat Petrochemical and Pucheng Clean Energy.

In addition to providing proprietary technology and process package design, the Company has also been commissioned to undertake the basic design, overall design and detailed engineering services of this MTO project as well as its ancillary and utility facilities, and had been involved throughout the entire project construction phase.

In line with China’s alternative energy strategy, Wison Engineering considers the coal-to-chemicals sector its strategic focus to achieve its business diversification. Meanwhile, Wison Engineering has always put extensive efforts into technological innovation while continuously enhancing its engineering to promote its business development, driven by its advances in innovative technology. As one of the few engineering companies in China to provide their customers with integrated services spanning the entire project life cycle, from process package design to start-up, we look forward to contributing our strengths to boosting the technological development and upgrading of modern coal-to-chemicals industry.

—Liu Haijun, Senior Vice President and Executive Director of Wison Engineering

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