The first test run of Hongyuan Chemical's AlF3 project achieved a success on March 23, 2013.
On March 23, 2013, the first test run of Sinochem Group subsidiary Yizhang Hongyuan Chemical Co., Ltd. (Hongyuan Chemical)'s AlF3 project with capacity of 80,000t/a achieved a success and operated stably for 72 hours, which means that Hongyuan Chemical's AlF3 project has officially entered into the phase of production and operation, according to China Fluoride Materials Monthly Report, issued by CCM in April.
This fluorine chemical project was invested by Hongyuan Chemical in 2011 with a total investment of USD159.24 million (RMB1 billion), including constructing a fluorite drying line with a capacity of 280,000t/a, an anhydrous hydrogen fluoride (AHF) production line with acapacity of 68,000t/a and some fluoride salt production lines, such as an AlF3 production line. Hongyuan Chemical started the first phase of its fluorine chemical project on May 12, 2011 and it will be completed after 2 years' construction. It's estimated that the annual sales value will reach USD159.24 million when the first phase of its project is put into operation. At that time, the sum of profit and tax can also reach USD47.77 million. The project has made an important contribution to the comprehensive utilization of China's fluorite resources and sustainable development of domestic fluorine chemical business. Although the raw material of AlF3–hydrofluoric acid–is produced by fluorite with lower grade, the quality of the first batch of AlF3 meets the requirements of high-class grade, which means Hongyuan Chemical has achieved the initial success in the utilization of lower grade fluorite to produce hydrofluoric acid and started to formally step into the field of inorganic fluoride.
The inorganic fluoride project is an important step for Sinochem Group's strategy in fluorine chemical industry. After the investment in the first phase of the project, Sinochem Group will gradually increase its investment scale, intensify the extension of fluorine chemical industrial chain and increase the variety of fluorine chemicals with high added value. Hongyuan Chemical has adequate advantages because of the abundant fluorite ore resources of Chenzhou City, Hunan Province, which will make it more competitive in the market if it builds a complete fluorine chemical industrial chain.
Despite the great advantage regarding fluorite resources that the project has, the present market situation is not favourable. According to the annual reports of domestic listed companies of fluorine chemical, most of them had poor business performance in 2012. Their net profit declined by more than 50% compared with that in 2011, because of the decreasing market price of most fluorine chemicals and the weak demand from the global market, which means that the competition between the producers is becoming more and more intense.
Moreover, Hongyuan Chemical, a new participant in fluorine chemicals, may be inferior in manufacturing technology and marketing compared with the leading enterprises, which may bring negative effects to Hongyuan Chemical's market competitiveness.
Table of Contents of China Fluoride Materials Monthly Report 1304:
Chenzhou Fluorine Chemical makes a breakthrough in fluorite tailing utilization
Domestic market price of fluorite keeps on rising in Q1 2013
Domestic market price of R22 rebounds in March 2013
Business performance of listed fluorine chemical companies decline sharply in 2012
Hongyuan Chemical's AlF3 project achieves a success
Progress of Shanxi Warwick's fluorine chemical project
Progress of China Star's AlF3 project
Shanghai 3F sees poor business performance in 2012
Longxing Chemical's PVDF project approved by resolution in 2013
Domestic enterprisers blindly invest in fluorine chemical industry
Import and export analysis of fluoride chemicals in China in Feb. 2013.
China Fluoride Materials Monthly Report, a monthly publication issued by CCM on 20th, covers the sectors on policy & legislation, company dynamic, supply & demand, price update, etc. of China’s fluoride material market. You can keep pace with the latest dynamics through its timely, complete and professional report.
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