Dan huge loss of 174 million yuan technological process coal glycol frustrated

Dan Technology recently released 2013 annual report, the net loss of 174 million yuan . Subsidiary Tongliao Jinmei equipment failure load reduction is the main reason of losses, also announced plans to overhaul the device recently . Informed sources, coal-to- glycol product quality and equipment operation are still problems , a breakthrough technology to improve product quality is the key.
China's dependence on imports of ethylene glycol than 70% , the shortage is expected to continue long-term future . Coal-to- ethylene glycol as a result of China 's unique cost advantage of new technology is expected to change the existing industry structure , industry insiders had been high hopes . Dan technology as the nation's largest coal-to- glycol production enterprises, but the long-term profitability is low, although represented a major technological breakthrough achieved in 2012 , but still coal- ethylene glycol plant accident due to failure resulting in 2013 net profit huge loss of 174 million yuan , which became the War of coal-to- glycol technology development path .

Coal glycol new technology can save 31% of costs , improve device stability is the key

An information analyst explained that the current production of ethylene glycol process route can be divided into two basic categories: coal-to- ethylene and oxalate . Coal glycol process is unique to China , the domestic coal-to- ethylene glycol plant mostly FJIRSM - Dan Technology Group technology research based.

She said that compared to traditional ethylene , ethylene glycol coal has a better cost advantage. Traditional naphtha - Ethylene Glycol system process cost about 6500 yuan / ton, coal-to- glycol process cost about 4500 yuan / ton ( Note : Integration calculated by Brent 108 , calculated as non-integrated ethylene 1355 , the exchange rate at 6.13 ) . So coal glycol in the country has an absolute cost advantage.

Great wisdom Newswires On this basis, a ton of coal than traditional ethylene glycol system cost savings of 2,000 yuan, or 31 %. As shown below, China is currently the only coal-to- glycol Dan enterprise technology and Huaneng Power, and Dan maximum capacity of science and technology .

But she said the coal-to- glycol is not stable because of the quality , mainly exported to markets such as resins and antifreeze . Glycol 90% polyester mainly in the downstream market , about 10% of market concentration in the resin , antifreeze , etc. Henan plant is currently at about 70% plant load , basic resins meet the market demand . Currently on the market for factory output in Henan coal glycol evaluation is good.

According to an ethylene glycol insiders declined to be named , said the quality of coal glycol Dan technology is not stable , and this is the main reason he could not meet the quality requirements of the grade polyester . In addition the device also heard its continued failure , which is the reason for the average load is not high device . Once these bottlenecks is broken , it will have a significant impact on the existing ethylene industry pattern.

Huge loss last year due to unexpected equipment failures in the first half , about 70% of the current plant load stability

Dan Technology insiders said Dan Technology ethylene glycol coal technology has made a breakthrough in 2012 , the plant load has increased substantially , but still produces a large loss last year was mainly affected by equipment failures and other factors in the first half , the production unit operation load is low. Running from the second half of last year improved plant load at more than 7 percent .Wholesale masking tape


Dan Technology on the 19th night announcement that the company owned subsidiary of Tongliao Jinmei Chemical Co., Ltd. 2014 is expected in the first half and the second half of each year to conduct a system-wide shut down for maintenance . Parking will be scheduled to begin in the first half of March 20 , estimated time of 15 days , mainly for the replacement of the catalyst and production equipment inspection, maintenance.

These people , explains that this is a routine maintenance check done once every six months for the company parking maintenance.

Prior to the great wisdom news agency has reported that in 2013 the company originally planned to Tongliao Jinmei annual capacity of 200,000 tons of ethylene glycol unit for expansion technical innovation , improve production capacity of 100,000 tons, but the project was deferred to next year . Analysts expect the expansion is complete, add the equivalent of 360% of profits in 2012 full-year net profit.Masking tape


But these people responded that the plan should be independent of the technological transformation overhaul .

Brokerage analysts : Not recommended recommend the company to investors

Since early 2009 , Dan placement technology implementation in Tongliao route generation by coal chemical ethylene glycol and oxalic acid. Dan had a big bull stock into the coal chemical technology , the introduction of some investors after news of technology even think Dan is the chemical company's " second Yantai Wanhua " , they have been high hopes for the industry .

But a long-term tracking of the company's brokerage analyst said that since 2009 to date , the time in the past for too long, even if the relevant production processes finally have a breakthrough, it is difficult to have high hopes for its reaction in the capital markets. From the personal judgment of view, not very recommend this company .Washi tape


Dan Technology Report 2013 shows that during the reporting period net loss attributable to shareholders of listed companies 174 million yuan ; net profit after deduction of non- loss 181 million yuan . The company's production and operation encountered some difficulties , a subsidiary of the first half of Tongliao Jinmei affected equipment failures and other factors, the low load operation of production facilities , the annual average production load was 54.59% ( half of which is 72.98% ) .Sellotape