Tianjin Tai'ao Petrochemical Storage and Logistics Base Project Established in the Nangang Industrial Zone

USA - English

• USA - English

TIANJIN, China, July 9 /PRNewswire-Asia/ -- On July 8th, a signing ceremony took place celebrating the "Investment Cooperation Agreement" between the Tianjin Economic-Technological Development Area (Nangang Industrial Zone) and the Petrochemical Storage and Logistics Base Project of Tianjin Tai'ao Petrochemical Logistics Co., Ltd. The agreement was signed by He Shushan, Development Area Party Organization secretary and Administrative Committee director, and Tianjin Tai'ao Petrochemical Logistics Co., Ltd. board president, Du Xiumin.

During the event, He Shushan stated, "The Nangang Industrial Zone is one of the ten main strategic areas in the Binhai New Area, and in the little over a year since its conception, it has already seen growth in construction occur at a breathtaking speed, which has established a firm foundation for the Nangang Industrial Zone to make itself a world-class center for the heavy chemicals industry and a completely functional port." He went on to say, "Tianjin Tai'ao Petrochemical's choice to fund the construction of their Petrochemical Storage and Logistics Base in Nangang is a clear demonstration of the strategic vision of the company's decision makers. The TEDA Administrative Committee will provide the company with the best possible service throughout its construction, production, operations, and all other stages of development, helping the company move towards an even brighter future."

Tianjin Tai'ao Petrochemical Logistics Co., Ltd.'s Petrochemical Storage and Logistics Base Project represents a total investment of RMB 4.3 billion, and the planned construction area spans 713,000 square meters. Once in production, the project's yearly operating income from storage business operations is estimated to be RMB 1.05 billion, and ordinary income from oil products is expected to be about RMB 8 billion. The project will be divided into two phases. In Phase I, with an investment of RMB 2.14 billion, the company will construct a storage warehouse spanning 348,000 square meters for gasoline, naptha, diesel, jet fuel, oil fuel, liquid industrial substances, and other products. Construction of the warehouse, which has an estimated eventual storage capacity of 830,000 cubic meters, will begin in August of 2010, and the warehouse is expected to be ready to begin operations by December of 2012. In Phase II of the project, the company will invest RMB 2.16 billion and utilize the remaining 365,000 square meters of land to construct a storage warehouse with a storage capacity of 1,170,000 cubic meters for gasoline, naptha, diesel, crude oil, and other products, and will also construct a fine chemicals project with a yearly production capacity of 1,100,000 tons. Phase II of the project will begin construction in December of 2012, and be ready to begin operations by December of 2014.

Tianjin Tai'ao Petrochemical Logistics Co., Ltd. is a joint venture company funded by Tianjin Rongtai Investment Co., Ltd. and Hong Kong Haitai Investment Co., Ltd. with an initial registered capital of RMB 200,000,000. Tianjin Tai'ao Petrochemical Logistics Co., Ltd. maintains close ties with Sinopec's North China branch office and Norwegian company Odfjell Terminals Asia Co., Ltd., and plans to work together with them in the Nangang Industrial Zone to construct an internationalized, large-scale, and comprehensive petrochemical storage and logistics base.

SOURCE Tianjin Economic-Technological Development Area