Fill the domestic gap! Satellite Chemical plans to invest in the construction of the first EAA production unit in China
Latest News: On the evening of August 8, Satellite Chemical announced that its wholly-owned subsidiary Santel and South Korea’s SKGC signed the “Joint Venture Contract on Sino-Korea Cree New Materials (Jiangsu) Co., Ltd.” , the two sides agreed to increase the capital of Sino-Korean Creui Company based on their respective advantages to jointly build and operate the EAA (ethylene acrylic acid copolymer) plant project. The production scale of the EAA plant is 40,000 tons per year, and the total investment is about 1.64 billion yuan.
It is worth noting that my country’s domestic EAA currently relies on imports, and this project is the first EAA production facility in my country.
The total investment is approximately 1.64 billion yuan
According to the announcement, SKGC holds 100% equity of Sino-Korea Cree. SKGC and Shanterai agreed to combine their respective strengths and advantages in technology, intellectual property rights, business capabilities, etc., to increase the capital of Sino-Korean Cree Company to jointly build and operate the EAA plant project. The production scale of EAA plant is 4 10,000 tons / year, the total investment is about 1.64 billion yuan.
The registered capital of Sino-Korea Career Company is planned to be increased to 656 million yuan. Shanterai Company will contribute in cash with its own funds. The proposed subscription amount is 262.4 million yuan, accounting for 40% of the registered capital. Sino-Korea Career Company will not be included in the company merger. Scope of statements; SKGC intends to subscribe for a capital contribution of 393.6 million yuan, accounting for 60% of the registered capital.
According to the requirements of the agreement, during the period of existence, in order to ensure stable production, Sino-Korean Cree Company shall guarantee to purchase ethylene and refined acrylic acid from Shanterai Company or the affiliates designated by Shanterai Company. Stable supply of required ethylene and refined acrylic acid raw materials to Sino-Korean Cree Company.
Satellite Chemical said that this foreign investment is an important measure for the company to implement the company’s strategy of building a low-carbon chemical new material technology company with lightweight raw materials as the core through cooperative development. It will accelerate the company’s integration of upstream and downstream industry chains and improve new energy. Materials, new polymer materials and functional chemicals layout.
Fill the gap in domestic EAA production
It is understood that EAA is made of high temperature and high pressure free radical polymerization of ethylene and refined acrylic acid. It has excellent heat sealing and tear resistance, and can isolate air and water vapor. It is used in electric vehicle battery electrodes and separators, food and drug packaging, photovoltaics, etc. It has a wide range of applications, and can also be used in wire and cable, steel coatings.
Currently, domestic EAA relies on imports. The global EAA production capacity is about 300,000 tons/year, which is monopolized by DuPont, INEOS, Mitsui, SK, ExxonMobil and other companies, and the top five companies have a market share of 90%. The domestic EAA import volume is about 30,000 tons/year, and the import substitution potential is large.
The EAA project jointly constructed by Satellite Chemical and SKGC is not only the third EAA plant of SKGC in the world, but also the first plant in Asia. After the project is completed and put into operation, it will fill the gap of domestic EAA production.