PINGDINGSHAN, CHINA--(Marketwired - Jul 15, 2014) - SinoCoking Coal and Coke Chemical Industries, Inc. (
Originally scheduled to last for one month, the installation of gas furnaces, electrical instrumentation, and material transporting, dust removal and cooling/purification systems was completed in only 23 days -- placing the facility on target to begin initial production of syngas in mid-September.
At full capacity, the facility is expected to produce 25,000 cubic meters of syngas per hour, among the highest outputs of any syngas plant in China.
As previously announced, gross profit margin on syngas sales is expected to be between 45 and 50 percent, significantly higher than any other current SinoCoking product.
"We are thrilled to be ahead of schedule on our construction progress," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "Thanks to the efforts of our engineering contractor, Lin Yu Jian Group, our vision for this facility is rapidly coming to fruition."
Lin Yu Jian, a leading engineering contracting company based in Henan Province, has assigned over 160 workers to the project.
In the testing and calibration phase, said Mr. Lv, all of the facility's equipment and systems will be monitored to optimize their performance both individually and in tandem with other equipment and systems. This work, he said, will be performed by engineers and technology specialists with both Lin Yu Jian and SinoCoking, and will follow the strict guidelines applicable to syngas projects of this size.
"Once this work is complete," said Mr. Lv, "we will be ready to enter the final phase, which is the trial production of syngas at our facility. We would expect to progress to full production of syngas in a reasonably short time."
Syngas, a clean-burning fuel, is increasingly utilized as a clean-energy alternative to burning coal. Comprised primarily of hydrogen and carbon monoxide, syngas can also be used to produce a range of widely-used industrial products such as fertilizers, solvents and assorted synthetic materials.
"We look forward to completing this transition from a producer of coal and coke products to one of China's leading providers of clean-burning fuel," concluded Mr. Lv. "Considering the soaring energy demands, crippling pollution problems and massive greenhouse gas emissions facing our nation, I know of no greater goal than to help alleviate these conditions and begin restoring a cleaner and healthier environment to our people."
On July 14, SinoCoking announced that, subject to shareholder approval, it was renaming the company Clean Synthetic Technologies Corp. The name was chosen to accurately reflect the Company's new emphasis on the production of clean-burning energy products.
SinoCoking and Coke Chemical Industries, Inc.(www.scokchina.com), a Florida corporation, is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking currently owns its assets and conducts its operations through its subsidiaries, Top Favour Limited and PingdingshanHongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province PingdingshanHongli Coal & Coke Co., Ltd., Baofeng Coking Factory, BaofengHongchang Coal Co., Ltd., BaofengHongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., BaofengShuangri Coal Mining Co., Ltd., and BaofengXingsheng Coal Mining Co., Ltd.
For further information about SinoCoking, please refer to our periodic reports filed with the Securities and Exchange Commission.
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