DSM Melamine and China National Offshore Oil Corp. Chemical Ltd. sign a letter of intent for building worldscale melamine plant

21-Jul-2004

DSM melamine and China National Offshore Oil Corp. Chemical Ltd. (CNOOCC) signed a letter of intent to study jointly the feasibility of building a new 120 kt melamine plant on Hainan Island, China. The envisaged co-operation between DSM and CNOOCC will be 70 / 30. The total investment amount is expected to be approximately $100 million. The final investment decision by the two companies is foreseen for Q1, 2005.

"We are very happy with the co-operation with CNOOCC. This investment fits in with DSM' s wish to combine economies of scale and advanced technology with an excellent raw material position and market proximity. By teaming up with CNOOCC we expect to achieve the low cost position which is necessary to remain successful in global competition. Via active participation in the Chinese market, DSM will be able to actively maintain DSM Melamine's global leadership position," says Hans Dijkman, Director of DSM Melamine.

The new plant under study will be based on DSM technology. With a capacity of 120 kt it will be the largest melamine plant in the world. Hainan Island has been chosen as location because CNOOCC has an excellent position in natural gas there and operates a modern, large scale urea plant in Dongfang. The technology for this urea plant has been supplied by DSM's licensing unit, Stamicarbon. In addition, the Hainan government is willing to actively support the project.

DSM Melamine will hold a 70% share in the co-operation and CNOOCC 30%. The parties envisage selling product from the new plant in the fast growing Chinese market as well as in export markets. Assuming a positive investment decision in Q1 2005, the plant is expected to be mechanically complete by the end of 2007.

Mr. Yang Yexin, General Manager of CNOOCC, gave the following comment: "The co-operation with DSM Melamine will be a continuation of our CNOOC headquarters' long-term co-operation with big overseas companies. We will take our co-operation purpose of "win-win" and achieve our ambitions in this new field. At the same time we will also jointly contribute to the development of Hainan Province."

https://www.chemeurope.com/en/news/38637/dsm-melamine-and-china-national-offshore-oil-corp-chemical-ltd-sign-a-letter-of-intent-for-building-worldscale-melamine-plant.html