| Work Detail |
HOUSTON, Aug. 23 (Xinhua) -- Koch Methanol, an affiliate of Koch Industries, has agreed to buy into 1.85 billion U.S. dollars methanol production facility in Louisiana, the United States, from Chinese Yuhuang Chemical Industries Inc. (YCI), both companies announced Thursday.
According to the agreement, Koch Methanol has acquired an indirect minority equity interest in YCI Methanol One, LLC.
YCI, a wholly owned subsidiary of Shandong Yuhuang Chemical Company, is constructing a 1.85-billion-dollar methanol production facility in St. James Parish, Louisiana. The facility will be capable of producing approximately 1.7 million metric tons of methanol per year.
Supported by a syndication loan arranged and led by Bank of China, construction on the new methanol production facility began in January 2017, while commercial production of methanol is expected to begin in mid-2020.
As part of its investment, affiliates of Koch Methanol will receive the exclusive methanol offtake rights from the new facility, as well as construct, own, and operate the methanol terminal assets for the outbound flow of methanol.
"The decision by Koch Methanol to invest in YCI Methanol sends a clear signal to the industry about the strength of this facility," said Charlie Yao, CEO of YCI Methanol One.
"The new facility is located in a region with convenient access to natural gas, a highly skilled workforce, and world-class transportation infrastructure, allowing us to be very competitive in our production and distribution. If viable, there is also sufficient land to add a second and third plant."
Senior Vice President of Koch Methanol Jim Sorlie said: "Koch Methanol seeks to build long-term, mutually beneficial relationships and this investment is a good example of the opportunities we look for and were very excited to continue to build and grow this relationship."
Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics.
|
