August 1, 2006

China's Kaier to build RMB500 million corn facility in Jilin province

Liaoning Kaier Group Corp, a major grains processing equipment producer in China, has signed an agreement to invest RMB500 million (US$62.6 million) to set up corn processing facility in Qianguo County in northeastern Jilin Province, said a local official Monday (Jul 31).

"Liaoning Kaier Group plans to build an ethylene oxide plant with corn as the main raw material in Qianguo County," said an official with the government of Qianguo County, who only gave his surname Zhang.

"The plant will have the capacity to processing 300,000 tonnes of corn annually," Zhang said, adding that corn will be provided by Qianguo county and neighbouring areas.

Jilin is a major corn producing region in China.

"The construction of the plant is expected to begin as early as in August this year," Zhang added, without providing further information about the project.

Zhang Songjie, vice president of Liaoning Kaier, confirmed the company's investment in Jilin.

He added that Liaoning Kaier would make most of the equipment for the plant itself.

Ethylene oxide is an important industrial chemical used as an intermediate in the production of ethylene glycol and other chemicals, and as a steriliser for foodstuffs and medical supplies.