Qingdao Haijing Chemical to use Ineos' VCM, S-PVC technologies at its 400,000 tonnes/year VCM plant and 300,000 tonnes/year S-PVC pant in Qingdao, China; facilities expected to start up in 2013

HAMPSHIRE, England , August 4, 2011 (press release) – QINGDAO HAIJING CHEMICAL (Group) Co. LTD has selected INEOS Technologies Vinyl Chloride Monomer (VCM) and Suspension Polyvinyl Chloride (S-PVC) technologies for a project at its new site located at Dongjia-kou Pro Port Industrial Zone, Qingdao, People’s Republic of China.

The 400 ktpa VCM plant features production of VCM by pyrolysis of Ethylene Dichloride (EDC). The EDC will be produced using high and low temperature chlorination and INEOS’s unique two stage fixed bed oxychlorination process.

The 300 ktpa S-PVC plant will produce a full range of suspension PVC grades from VCM using INEOS Technologies suspension process, including the use of INEOS Technologies proprietary PVC additives and recipes.

The two plants, forming part of a broader petrochemical complex, are scheduled to start-up in 2013.

Peter Williams, CEO INEOS Technologies, stated: ”We are delighted to welcome Qingdao Haijing into our family of licensees. Qingdao Haijing has set a very clear strategy to become a leading Vinyls player in China using best in class technologies for safety, ease of operation, product range and environmental impact. We look forward to contributing to a very successful project”.

Mr Li Ming, Chairman of the Board of QINGDAO HAIJING, commented: “The Qingdao Haijing project is a very important step for the Haiwan Group’s Production and Growth Plan. In order to be competitive in the PVC market, Qingdao Haijing performed a rigorous selection process and chose the most advanced technology available. Qingdao Haijing's cooperation with INEOS Technologies is just beginning. INEOS Technologies VCM and PVC technologies proved to be the safest, most environmental friendly and most efficient processes.”

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