Chengzhi announced on August 16, 2023 that its wholly-owned subsidiary, Qingdao Chengzhi Huaqing New Material Co., Ltd. (hereinafter referred to as “Chengzhi Huaqing”), signed a License Contract for Technology Implementation with Zhejiang Zhiying Petrochemical Technology Co., Ltd. (hereinafter referred to as “ZONEPIC”), which will supply a mature 2*100,000 tons/year POE technology package.

According to the announcement, ZONEPIC will supply a mature 2*100,000 tons/year POE technology package to Chengzhi Huaqing, including technical data including process manual and analysis manual, technical training and technical services, for the design, procurement, construction, commissioning, operation and maintenance of the contract plant. ZONEPIC will also provide process performance guarantee, including raw material and auxiliary utilities consumption, product quality, production capacity and other contract guarantee values. The contract is valid for 10 years.

The signing of the License Contract for Technology Implementation is of great significance to Chengzhi’s long-term development and implementation of strategies, is conducive to further enriching its product structure layout, expanding its development space in the field of new chemical materials, and enhancing its core competitiveness, operating capacity, industry influence and counter-cyclical sustained profitability, and is for the benefit of its development strategies and all its shareholders.

Background Reading:

Chengzhi Shareholding Co., Ltd. (Stock Code: 000990) was founded in October 1998 with the management HQ in Beijing. It is a state-owned holding high-tech industry group by taking the clean energy and chemical industry as the core.

Qingdao Chengzhi Huaqing New Material Co., Ltd., a wholly-owned subsidiary of Chengzhi, was founded in March 2022 in Huangdao District, Qingdao City, Shandong Province, with a registered capital of RMB 1 billion. It plans to invest in the construction of a POE (polyolefin elastomer) project and a UHMWPE (ultrahigh molecular weight polyethylene) project in Dongjiakou Economic Zone, Qingdao West Coast New Area, with estimated investments of about RMB 4 billion and RMB 800 million, respectively.