BEIJING , Jan. 9 /PRNewswire-Asia-FirstCall/ -- China Fire & Security Group,
Inc. (Nasdaq: CFSG) ("China Fire" or "the Company"), a leading industrial fire
protection product and solution provider in China, announced today that the
Company has won a contract with Shenhua Baotou Charcoal Chemical Industry Co.,
Ltd ("Shenhua Baotou Charcoal Chemical") for its coal-to-olefins project,
valued at approximately
China Fire will serve as a safety products provider for the coal-to-olefins project carried out by Shenhua Baotou Charcoal Chemical. China Fire will provide various fire detection products including the Company's patented linear heat detector, third-party safety and surveillance products, and technical and engineering support. The project is expected to be completed within two years.
Shenhua Baotou Charcoal Chemical, located in Baotou, Inner Mongolia, is a subsidiary of Shenhua Group Corporation Limited ("Shenhua Group"; 601088.SH), a leading state-owned diversified energy-based company with major businesses concentrating on coal resources and the affiliated railways, power plants, coal terminals and shipping fleets. Shenhua Group currently owns 54 coal mines with a total capacity of 200 million tons, power plants with a total installed capacity of 16,000 MW and 1,400 kilometers railways with a total transportation capacity of 128 million tons. By 2010, Shenhua's expected coal production, installed capacity of power plants, transportation capacity, port handling capacity, coal liquids and chemicals production are expected to reach 300 million tons, 30,000 MW, 200 million tons, 140 million tons and 4 million tons, respectively.
The coal-to-olefin project in Shenhua Group, launched in 2007, is a result of the need for further development and cultivation of China's energy and heavy chemical industry. China has rich coal and coal reserves that exceed 1 trillion tons. With the progress in modern coal chemical technologies, processes for the production of ethylene and propylene from coal to methanol are already well developed. As oil resources continue to become more limited on a global scale, such processes have become increasingly competitive. China Fire believes the coal-to-olefin project can help ease the issue of oil shortages, ensure energy security in China and play a critical role in the sustainable development of the coal industry in China.
The coal-to-olefin project is part of the plan to use "clean coal" technologies that convert coal to methanol to produce ethylene and propylene, the building blocks of various plastics and chemical products manufacturing. The new project, scheduled for completion in 2010, will be capable of producing a full range of linear low and high-density polyethylenes.
Mr. Brian Lin , Chief Executive Officer of China Fire commented, "We're excited to be the safety products provider for Shenhua Baotou Charcoal Chemical's coal-to-olefins project, which further demonstrates our leading position in China's fire safety industry. We believe the petrochemical industry, including coal and chemical power plants, have tremendous growth characteristics and the need for first class fire protection solutions directly benefits CFSG. Although the terms of this contract are relatively small, this is the first of a series of similar plants that are to be built by Shenhua. We believe we are well positioned to win additional projects from this key player in the chemical industry."
Mr. Gangjin Li, Executive Chairman of China Fire commented, "China, as one of the fastest growing economies in the world, is witnessing massive investment in new projects and plant upgrades in almost all segments of the petrochemical process industry. Existing products like Linear Heat Detectors (LHD) have direct applications in the petrochemical industry and we believe will benefit from the industry's impressive growth opportunities. Additionally, in an effort to serve our petrochemical clients with the best fire protection solutions, we are further strengthening our R&D capabilities to develop patented products designated for the petrochemical industry and inviting international brand names for strategic partnerships.