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Dow Chemical, Shenhua revive $10 billion China project
BEIJING (Reuters) - Dow Chemical Co (DOW.N) and Shenhua Group, China's largest coal miner, will reportedly move ahead with their planned $10 billion coal-to-chemical project in Shaanxi province after a delay of at least one year.
Top executives from the companies, senior officials in Shaanxi province and representatives from the U.S. Embassy in China attended a cornerstone laying ceremony on November 3, the China Chemical Industry News reported on Thursday.
The Yulin project in northern Shaanxi aimed to install 23 units that include a 3.32 million tonne-per-year methanol facility for ethylene and propylene, which are used for making various plastics and chemical products.
"The feasibility study of the project has entered the stage of applying for an approval from the central government," the newspaper said, citing an unnamed local government official.
The feasibility study was previously planned to be completed in 2008.
An assistant president with Shenhua who is based in Beijing declined any knowledge of the project, and officials at Dow Chemical in China could not immediately be reached.
Dow sold off $3.4 billion in assets this year to boost its bottom line and reduce debt. The chemical firm also cut costs by laying off thousands of workers and shutting several plants.
Shenhua is the parent of Hong Kong-listed China Shenhua Energy (1088.HK).
(Reporting by Jim Bai and Chen Aizhu; Editing by Ken Wills)
