Hangzhou Steam Turbine Co., Ltd.Announcement on the voluntary disclosure of information on the signing of the3.2 million tons/year light hydrocarbon comprehensive processing and utilization
project of Lianyungang Petrochemical
The members of the Board and the Company acknowledge being responsible for the truthfulness,accuracy, and completeness of the announcement. Not any false record, misleading statement orsignificant omission carried in this announcement.
I. OverviewHangzhou Steam Turbine Co., Ltd recently signed a contract of 3.2 million tons/year lighthydrocarbon comprehensive processing and utilization project with Lianyungang Petrochemical Co.,Ltd, with a total contract amount of almost 200 million yuan (that shall be subject to the settlement).
II. Introduction of the cooperation projectLianyungang Petrochemical Co., Ltd is a holding subsidiary of the Satellite Petrochemical,which is the largest acrylic manufacturer in China, as well as one of the world's top five acrylicmanufacturers. Lianyungang Petrochemical has an industrial chain centering on C2 (mainlydownstream industry of ethylene, namely PE, SM, EO MEG and so on), and LianyungangPetrochemical's 3.2 million tons/year light hydrocarbon comprehensive processing and utilizationproject is located in the Lianyungang base of satellite petrochemical. The satellite petrochemicalplans to form the industrial integration pattern of C2 and C3 (mainly refers to propylene and itsdownstream, such as PP, PO, MPG, acrylic acid and ester, and butyl octanol) through theconstruction of the Lianyungang base.
III The main content of the contract1. Project Name: 3.2 million tons/year light hydrocarbon comprehensive processing andutilization project of Lianyungang Petrochemical Co., Ltd
2. Project Location: Petrochemical Industrial Park Xuwei New District Lianyungang City,Jiangsu Province
3. Number of project units: 8 units4. Project contracting scope: steam turbines for 2 sets of three-unit use of 1.25 million tons/yearethylene device, steam turbines for 2 sets of 900,000 tons/year EOEG device use
5. Project cycle: 2 yearsIV. The impact on the listed companyThe 3.2 million tons/year light hydrocarbon comprehensive processing and utilization projectof Lianyungang Petrochemical Co., Ltd is the first set of more than one million tons ethane toethylene project in China. This iconic demonstration project will play an active leading role in thefuture development of the ethylene market. The signing of this project contract has enhanced thecompany's competitiveness in the ethylene market and is conducive to enlarge the influence of thecompany's brand.V. Project risk tipsThe risk of implementation of this project is less than expected, and investors are advised to makecareful decisions and pay attention to prevent investment risks.
This announcement is hereby made.
The Board of Directors of Hangzhou Steam Turbine Co., Ltd.
November 1, 2018