Danhua Technology's subsidiary decided to stop production of ethylene glycol due to coal supply
Global Polyurethane News: On the evening of October 19, Danhua Technology issued an announcement that the company received a notice from its holding subsidiary Tongliao Jinmei that the recent shortage of raw coal supply at its location has made it difficult to maintain its normal load production. Tongliao Jinmei has decided to make it in October. The production of ethylene glycol will be stopped on the 20th, and only the normal production of oxalic acid will be retained.
Public information shows that Tongliao Jinmei is a joint venture established by Danhua Technology, Chinese Academy of Sciences, and Shanghai Jinmei Holdings. Danhua Technology holds 76.77% of the shares. At the production and operation level, Tongliao Jin Coal uses lignite as raw material, and uses large-scale chemical plants to produce ethylene glycol and oxalic acid. At present, the company's designed production capacity is 220,000 tons of ethylene glycol and 80,000 tons of oxalic acid per year. Among them, ethylene glycol is the main product. In 2020, ethylene glycol products will achieve operating income of 474 million yuan, accounting for 44.04% of the overall revenue of listed companies. In the first half of this year, Tongliao Gold Coal produced 76,600 tons of ethylene glycol and 52,200 tons of oxalic acid. The reason for the suspension of production is that the supply of raw coal at Tongliao Jinmei's location is tight, and it has been difficult to maintain normal load production. According to Danhua Technology, the company did not give a clear time limit for when to resume production in the future, only that it would depend on the supply of raw coal in the future.
In this regard, Danhua Technology stated that the suspension of ethylene glycol production will have a certain adverse effect on production and operation. Because the time for resumption of production is still difficult to predict, the specific impact cannot be estimated.