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Tangshan Sanyou Chemical Soda Ash and Chlorine Alkali Industry Continue to Expand
In the first half of this year, Sanyou Chemical's soda ash and chlor-alkali industries continued to grow rapidly, laying the foundation for a "two alkalis" production model that boosted efficiency and output. The company’s semi-annual report revealed strong financial performance, with operating income reaching 1.69 billion yuan, operating profit at 220 million yuan, total profit also at 220 million yuan, and net profit of 150 million yuan—an impressive increase of 46.12%, 110.65%, 111.29%, and 95.62% respectively compared to the same period last year. Earnings per share stood at 0.28 yuan.
Driven by its strategic vision of "horizontal expansion for economies of scale, vertical integration for industrial chain development, and diversified operations across sectors," Sanyou Chemical has solidified its position in both soda ash and chlor-alkali production. In the first half of the year, the company produced 812,800 tons of soda ash, 28,900 tons of calcium chloride, 56,000 tons of caustic soda, and 57,800 tons of polyvinyl chloride (PVC), significantly enhancing its market presence and profitability.
Three major projects under construction have entered the trial phase, with expectations of boosting production capacity in the second half of the year. These include the double 200,000-ton PVC and caustic soda project, the calcium chloride expansion initiative, and the second phase of the thermal power plant. The PVC and caustic soda project was completed by the end of June, while the PVC system is now operational. The calcium chloride expansion project is 92.89% complete, with a 50,000-ton/year granular anhydrous calcium chloride plant currently in trial and a 60,000-ton/year granular dihydrate plant under construction. The second phase of the thermal power project has reached 89.15% completion and is now in trial operation. Additional projects, such as the 20th and 21st carbonization towers and the circulating water cooling system upgrade, are also progressing well.
In terms of energy saving and emission reduction, Sanyou Chemical has implemented seven projects and has eight more underway, all expected to be completed and operational within the year. Notably, the ammonia-alkali waste liquid and chlor-alkali calcium carbide slag comprehensive utilization project was included in the country’s seventh batch of resource conservation and environmental protection initiatives in 2006, receiving a central government allocation of 10 million yuan.
Raw material shortages, particularly raw salt, have become a significant challenge due to shrinking salt fields and rising demand. Additionally, increased regulatory pressure on high-pollution and energy-intensive industries has tightened supply conditions. To address this, Sanyou Chemical has initiated direct supply arrangements in Shandong to ensure stable raw salt supplies. It is also working to strengthen existing coke supply channels and cultivate 1–2 key distributors to balance supply risks.
Moreover, the recent adjustment in China’s export tax rebate policy has impacted the company. Effective July 1, 2007, the tax rebate rate for soda ash dropped from 13% to 0%, and for PVC products, it fell from 11% to 5%. This change is expected to reduce the company’s annual profit by approximately 46 million yuan. To mitigate this, Sanyou Chemical plans to raise product export prices, optimize operations, and reduce costs to maintain competitiveness.