On December 30, 2011, Hubei Yihua Chemical Industry Co., Ltd. announced that the company’s subsidiary, Xinjiang Yihua Chemical Co., Ltd., has an annual output of 400,000 tons of synthetic ammonia and 600,000 tons of urea. The project was started and put into operation a few days ago to produce qualified products. At this point, Hubei Yihua's annual urea production capacity will reach 3.3 million tons, and the scale advantage will further show.
Xinjiang Yihua Chemical Co., Ltd. is a wholly-owned subsidiary of Hubei Yihua Chemical Co., Ltd., located in the plan area of ​​coal, electricity, and coal chemical industry zone in the Wudangwan, Xudong, Xinjiang, and is located in Jimsar County. The Wucaiwan Mining Area has extremely impressive coal reserves. After preliminary exploration, the estimated reserves of coal are 180 billion tons and the proved reserves are 20 billion tons, which has the resource advantages of developing coal-electricity integration and coal chemical business. Relying on the abundant local coal resources, Xinjiang Yihua Company invested in the construction of urea and chlor-alkali projects, which further improved the national layout of Hubei Yihua Company.
Xinjiang Yihua produces an annual output of 400,000 tons of synthetic ammonia and 600,000 tons of urea. It is a raised capital investment project approved by Hubei Yihua Company in the fifth session of the sixth board meeting in 2010 and the second extraordinary shareholders meeting in 2010. The project applies advanced coal gasification technology and relies on Xinjiang's abundant coal resources, especially the excavation of a large-scale open-pit coal mine in the Zhundong Wucaiwan, to build a large-scale nitrogen fertilizer production facility with an annual output of 400,000 tons of synthetic ammonia and 600,000 tons of urea. The project is expected to have a total investment of 20.25 billion yuan, of which fixed assets investment is 1.932 billion yuan and circulating liquidity is 92.53 million yuan. After the project is completed and put into production, it is estimated that annual sales income can reach 916.62 million yuan. At the same time, relying on Hubei Yihua sales network throughout the country, Xinjiang Yihua will become an important profit growth point of the company.
Hubei Yihua is one of the largest fertilizer manufacturers in the country. Its production and sales capabilities have ranked among the top in the country for many years, and it has a high reputation and brand influence in the fertilizer industry. Through the expansion of production capacity and continuous improvement of the industrial chain, the company has covered more than 10 varieties of fertilizers, chemicals, and thermoelectrics. Earlier, Hubei Yihua had an annual production capacity of 2.7 million tons of urea, which was distributed in the headquarters of Yichang, Yihua of Hunan, Yihua of Guizhou, and Ordos of Inner Mongolia. This time, Xinjiang Yihua will produce 400,000 tons of synthetic ammonia and 600,000 tons of urea. After the project is completed and put into production, the total urea production capacity of Hubei Yihua will reach 3.3 million tons, and the scale advantage will be further enhanced, which will contribute to the long-term stability and standardization of the company.
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