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Wison Engineering, Tianjin University and Xinxin Group Sign Strategic Cooperation Agreement to Promote Commercialization of Synthetic Gas-to-Ethylene Glycol Technology

Release time:2015-06-09

SHANG HAI, 9 June 2015 – Wison Engineering Services Co. Ltd. (the “Company”, SEHK stock code: 2236; together with its subsidiaries known as the “Group”), one of the leading energy & chemical engineering, procurement and construction management (“EPC”) service providers in China, announces that Wison Engineering Ltd. ("Wison Engineering"), its indirect non-wholly owned subsidiary, has signed a strategic cooperative agreement with Guizhou Xinxin Chemical Engineering Co., Ltd. (“Xinxin Group”)  and Tianjin University. Pursuant to the agreement, the three parties will jointly promote the commercialization of their proprietary technology for the production of ethylene glycol from synthetic gas. Moreover, Wison Engineering will provide EPC services relating to a demonstration unit for the yellow phosphorus tail gas to70 kta oxalic acid and 10 kta ethylene glycol project under the strategic agreement.

According to the agreement, Wison Engineering, Tianjin University and Xinxin Group will give full play to their respective advantages to enhance the development of their proprietary synthetic gas-to-ethylene glycol technology and to promote its commercialization. While Tianjin University will provide the process design package (PDP) of synthetic gas-to-ethylene glycol technology, Wison Engineering will work on PDP conversion and offer engineering design and project management services, and Xinxin Group will invest in the construction of a 10 kta ethylene glycol demonstration unit for the yellow phosphorus tail gas-to-70kta oxalic acid and 10kta ethylene glycol project as s pilot plant for further technology optimization.

Wison Engineering is responsible for the basic design, detailed design, procurement and construction management, and commissioning of the demonstration unit. It will take the lead to adopt advanced plant design software, including Smart Plant 3D and Smart Plant P&ID, to process the digitalized engineering work, which can improve efficiency and the design progress. At the same time, the project will also involve the implementation of modular design, manufacturing, transportation and installation, to enable a complete digital delivery to the project owner.

Mr. Liu Haijun, Senior Vice President of Wison Engineering, said," Wison Engineering is committed to continuous technological innovation and new technology engineering improvement. We are very honored to forge a strategic cooperative alliance with Tianjin University and Xinxin Group, which enables comprehensive cooperation between the Group and academic institutions, and jointly enhances the optimization and promotion of synthetic gas-to-ethylene glycol technology so as to promote the rapid development of China's modern coal chemical industry. The demonstration unit converts yellow phosphorus tail gas-to-ethylene glycol to sets a new environmental and economic direction for the commercial application of synthetic gas-to-ethylene glycol technology."

Mr. ShenXin, President of Guizhou Xinxin Group, said "As an integrated chemical group focusing on the mining, phosphorous and coal chemical, and carbon 1-chemical industry, Xinxin Group fully recognizes the role of science and technology in the transformation and upgrading of traditional industries. Hence, in 2009, we entered into full cooperation with Tianjin University in the carbon-1 chemical industry, and have since made a series of achievements. We look forward to this fruitful tripartite cooperation that will lead to a new pattern of coal-to-ethylene glycol technology."

Professor Ma Xinbin, Dean of the Chemical Engineering School of Tianjin University is fully confident of the tripartite cooperation in the industrialization of synthetic gas-to-ethylene glycol technology. He said, "Tianjin University, as a pioneer research unit in conducting synthetic gas-to-ethylene glycol technology, carried out solid and detailed research work and made a significant contribution to the progress of the domestic synthetic gas-to-ethylene glycol technology. Through this close collaboration with Wison Engineering and Xinxin Group, we will strive to take develop a cutting-edge synthetic gas-to-ethylene glycol technology with more feedstock alternatives and less power consumption, in order to provide optimal technology for future sets of industrial units, including Xinxin Group’s 300kta Coal-to-Ethylene Glycol project.

With two-decade efforts of research, Tianjin University’s synthetic gas-to-ethylene glycol technology uses gas-phase CO coupled with synthetic oxalate and oxalate hydrogenation to produce ethylene glycol. In 2013, the China Petroleum and Chemical Industry Federation made an on-site72-hour test for a one-kiloton pilot plant f and determined that ethylene glycol products can meet the requirements for polyester production. Its feedstock consumption and catalyst performance reached domestic advanced level. Based on the analysis of the pilot plant, Wison Engineering engaged in cooperation with Tianjin University for a large-scale synthetic gas-to-ethylene glycol unit. Tianjin University worked on PDP for industrial (demonstration) installation and Wison Engineering undertook basic and detailed design, with both parties working together on the PDP optimization, and the conversion of PDP to engineering design. Through conversion and optimization, the PDP can accommodate the scale of a single 300kta ethylene glycol plant, with 10% less investment in the ethylene glycol main part. Meanwhile, energy-efficient distillation technology can ensure product quality and bring the yield rate of polyester-grade ethylene glycol up to more than 95%.

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