I. Project Name:
Acetic Acid Production Line with Annual Output of 150,000 Tons

II. Project Implementation Agency:
Yulin City Natural Gas Chemical Co., Ltd.

III. Project Description:
Acetic acid, a kind of organic chemical product, is made from methanol and carbon monoxide by low pressure carbonyl synthesizing method; it is the indispensable and important materials for many industries such as textile, light industry, chemical, medicine, foodstuff and oil extraction as well as main by-product of natural gas chemical development. The project with annual acetic acid output 150,000 tons is a new chemical project for utilizing the existed methanol production line with annual output 200,000 tons and abundant and high quality coal materials in Yulin city, with the characteristics of good construction condition, low initial investment and product cost, wide market, short investment return period and better economic benefit.

IV. Total Investment and Cooperation Form:
The investment totals USD 127.81 million and the cooperation models including joint venture and introducing capital are all acceptable.

V. Anticipation of Market and Investment Return:
According to the statistics, in 2003 the 35% of acetic acid depended on import in our country, but in the mean time the by-products of acetic acid such as vinyl acetate and terephthalic acid kept quick increasing trend, these provide wider market foreground for the development of acetic acid products. After the completion of the project, the annual profit rate will be 15.42%, financial internal return rate of 14.65% (before income tax) and 12.25% (after income tax).

Contact Person:Zhang Haiyu
Tel: +86-912-3682669，3382476
Add.: #313 Shangjunnan Lu, Yulin 719000