(Hong Kong, 18 May 2023) –China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China, announced that its subsidiary Xingtai Risun Coal Chemicals Limited (“Xingtai Risun Coal Chemicals”) has signed a management service agreement with Shandong Juye Wanshan Weiye Chemical Co., Ltd. (“Shandong Juye Wanshan Weiye”). Shandong Juye Wanshan Weiye has commissioned Xingtai Risun Coal Chemicals to provide operation management services to its crude benzene plant for a period of 20 years. The plant has a production capacity of 100,000 tonnes/year, and is located in Juye Chemical Industrial Park (a provincial-level industrial park).
The signing of the new contract allows China Risun to expand its business in Shandong since it completed the acquisition of six Hongye Chemicals Enterprises and established production bases in Yuncheng and Dongming in January. The Group also secured operation management services with Baoshun Chemical and Chenyao Chemical in October last year. Such achievements reflect the Group's outstanding strength and strong market reputation as the world’s largest independent producer and supplier of coke, and the world’s leading integrated coking chemicals and refined chemicals manufacturer, supplier and operation management service provider. In addition, the Group has increased its refined capacity of crude benzene to 1.08 million tonnes per year, thus further consolidating its industry position as the “world’s largest coking crude benzene processor*”, as it can add value from producing by-products with coke from the Yuncheng production base nearby, and provide sufficient pure benzene raw materials at low cost to the caprolactam plant at the Dongming production base in the vicinity, thereby reducing the production cost of caprolactam. It can also facilitate the synergistic development of the Group in Dongming, Yuncheng and Juye in Heze, for maximum benefit.
Juye Risun Chemical Co., Ltd. ("Juye Risun Chemical"), which was set up after the Group signed a contract with Baoshun Chemical last year, is specifically tasked with implementation, so as to facilitate unified coordination and the delivery of benefits to the Group's business in Juye and even the entire Shandong Province. At present, Juye Risun Chemical has improved the quality of pure benzene to the level of petroleum benzene, which meets the requirements for the production of caprolactam at the Dongming production base, and by integrating the supply chain of crude benzene to implement maintenance and technical transformation, optimize process operation and indicator control, this greatly reduces the operating cost of the plant, curbs pollutants and carbon emissions, and helps establish a stable and strong regional chemical industrial chain, as well as gain recognition from partners, upstream and downstream enterprises, etc. At the same time, Juye Risun Chemical has accelerated the overhaul and resumption of operations of Baoshun Chemical’s 300,000 tonnes/year tar deep processing plant, which is expected to reach its designed capacity in April 2023. At which time, the idle plant can be fully revitalized and generate value; effectively driving local economic development and employment, and achieving mutual success in terms of business development and delivering social benefits.
Going forward, Juye Risun Chemical will shoulder its responsibilities for operation management services in accordance with the agreement; resume production of newly signed projects as soon as possible as well as help them improve efficiency; increase the business volume and bolster the capabilities of China Risun’s operation management services business; and facilitate the Group's business development in China and around the world.
– End –
*According to the data from the Frost & Sullivan Industry Report.
