Xinjiang Zhongtai Chemical Fukang Energy Co., Ltd.: The Core Circular Economy Intelligent Manufacturing Base for Chlor-Alkali Products of Zhongtai Chemical

1. Corporate Ownership & Registration Profile: Core Controlling Subsidiary of the Listed Company

Xinjiang Zhongtai Chemical Fukang Energy Co., Ltd. (abbreviated as Fukang Energy) is a core controlling subsidiary of Xinjiang Zhongtai Chemical Co., Ltd., an A-share listed enterprise with stock code 002092. All equity, industrial and commercial, and construction data are sourced from the listed company’s announcements released by the Shenzhen Stock Exchange, public documents of Fukang Municipal Government and industrial and commercial registration platforms. All content is objective and verifiable without fabricated data.

1.1 Basic Industrial and Commercial Information

• Date of establishment: August 5, 2009
• Legal representative: Jiang Yu
• Registered capital: RMB 2.243 billion
• Registered address: No. 3188 Zhunge'er Road, Fukang City, Changji Prefecture, Xinjiang, located in the national-level Fukang Industrial Park, a national demonstration base for new industrialization
• Total plant area: 9,532 mu with a green coverage rate of around 26%
• Current staff: more than 1,900 employees

1.2 Clear Equity Structure

1. Xinjiang Huatai Heavy Chemical Co., Ltd., an affiliate under Zhongtai Chemical, holds 52.5412% equity
2. Xinjiang Zhongtai Chemical Co., Ltd. directly holds 46.9795% equity
3. State Development & Investment Fund Co., Ltd., a policy financial investor, holds 0.4793% equity

Zhongtai Chemical controls a total of 91.89% equity through direct and indirect shareholdings. Fukang Energy is consolidated into the listed company’s annual financial statements and acts as the core production entity of the group’s chlor-alkali division.

1.3 Project Construction Timeline

The company launched planning in 2009 with a total investment exceeding RMB 8 billion, and constructed Phase I and Phase II circular economy projects successively. In 2012, the Phase I facilities with an annual output of 400,000 tons of PVC and 300,000 tons of caustic soda were put into operation, followed by the launch of Phase II projects. Later, technical renovation projects including a 30,000 tons/year paste PVC production line and a 10,000-ton mercury-free catalyst pilot facility were added. The paste resin project passed environmental acceptance in 2017, while the technical transformation of mercury-free catalysts obtained environmental impact assessment approval from Xinjiang Uygur Autonomous Region in 2021. All production lines have maintained stable continuous operation ever since.

2. Core Production Capacity & Full Product Portfolio for Domestic and Overseas Supply

As the core central chlor-alkali production base of Zhongtai Group, Fukang Energy has built an integrated closed-loop industrial chain covering self-provided power generation, chlor-alkali chemicals and fine chemicals. All core capacity and product specifications are disclosed in the listed company’s annual reports.

2.1 Main Core Production Capacity

• Polyvinyl Chloride (PVC): total annual capacity of 900,000 tons, covering general SG-series PVC resin, food-grade PVC resin and 30,000 tons of mixed-process paste PVC (PPVC)
• Ion-exchange membrane caustic soda: annual capacity of 600,000 tons, including flake caustic soda, pearl caustic soda and liquid caustic soda
• Supporting energy facilities: 300 MW cogeneration units paired with a 250 MW photovoltaic power station, forming a diversified energy supply system combining thermal power and photovoltaic power

2.2 Complete Product Range and Downstream Applications

1. Basic chlor-alkali raw materials: PVC resin, industrial sodium hydroxide, high-purity hydrochloric acid, liquid chlorine and sodium hypochlorite solution. Widely applied in building profiles, plastic pipes, wires and cables, water treatment, papermaking, alumina processing, textile printing and dyeing. Food-specific PVC resin is applicable to food packaging, medical consumables, children plastic products and automotive interior parts.
2. Fine chemical supporting products: paste PVC for artificial leather, plastic flooring and drop molding products
3. Auxiliary public products: industrial steam and industrial tap water. The company also provides equipment leasing, warehousing and pipeline transportation services externally.

2.3 Domestic & Overseas Trade Collaborative Channels

The company holds qualifications for general goods and technology import and export. Finished products are distributed globally through two major foreign trade platforms. Its domestic market covers chemical, building material and textile industrial chains nationwide. For export businesses, the company collaborates with Xinjiang Zhongtai Import and Export Co., Ltd. and Zhong Tai International Development (HK) Limited. Products are shipped via China-Europe Railway Express and ocean freight to over 90 countries across Central Asia, Southeast Asia, Africa and South America, serving as one of the core supply bases for the group’s overseas chemical product supply.

3. Layout of Circular Economy Industrial Chain: Cost Advantages Supported by Xinjiang Local Resources

Benefiting from abundant local coal, raw salt and limestone resources in Xinjiang, Fukang Energy achieves integrated park-level coordination with its upstream subsidiary Xinjiang Zhongtai Mining & Metallurgy Co., Ltd. A complete circular industrial chain of coal-power-calcium carbide-chlor-alkali-solid waste cement production has been established to realize 100% efficient recycling of resources.

1. Upstream synergy: Fully automatic calcium carbide workshops of adjacent Zhongtai Mining & Metallurgy deliver calcium carbide to Fukang Energy’s PVC production lines through sealed pipelines, eliminating long-distance transportation losses and logistics costs.
2. Internal energy circulation: Self-owned power plants generate electricity by reusing industrial waste heat from the park, supplemented by clean photovoltaic power. The system reduces coal consumption by 300,000 tons per year and achieves annual carbon emission cuts of over 760,000 tons.
3. Zero waste solid waste management: All calcium carbide slag generated during production is fully reused for supporting cement manufacturing. The reuse rate of industrial wastewater reaches 88.9%, and the comprehensive utilization rate of solid waste hits 100%, meeting advanced national energy consumption standards for green factories.
4. Industrial cluster driving effect: As the leading enterprise of Fukang’s advanced polymer material industrial cluster, the company coordinates with 42 upstream and downstream supporting enterprises to build a regional chemical industry collaborative ecosystem.

4. Intelligent Manufacturing & Technological Innovation: National Digitalization and Scientific Research Demonstration Enterprise

Fukang Energy keeps increasing investment in research and development, with cumulative R&D expenditure reaching RMB 1.176 billion in the past five years. A specialized R&D center with an investment of RMB 130 million has been constructed, integrating product testing, pilot scale-up and new process research. Remarkable collaborative innovation results have been achieved through industry-university-research cooperation, and all qualifications and awards are publicly released by official authorities.

4.1 Intelligent Factory Transformation

A full-coverage industrial internet safety control platform has been built, making the enterprise a national pilot unit for the project of "Industrial Internet + Hazardous Chemical Production Safety". Intelligent inspection robots, fully automatic packaging and palletizing robots and remote unattended central control systems have been deployed, completing automatic upgrading of 85% of production procedures. A total of 120,000 production data items across the whole plant are aggregated in real time to a digital twin central control center, realizing full-process remote scheduling and real-time risk early warning, which significantly reduces manual operation intensity in high-risk posts.

4.2 Core Technological Breakthroughs

The company focuses on the industrialization transformation of mercury-free catalysts to cut heavy metal pollution in chemical production at the source. It has obtained more than 170 national authorized patents covering chlor-alkali equipment optimization, safety production monitoring, high-end modified PVC and low-carbon energy-saving processes. It was listed as a national scientific and technological reform demonstration enterprise in 2024 and selected as a national typical case for quality improvement and brand building, winning an autonomous regional patent award in 2025.

4.3 High-End Product Upgrading

Continuous R&D on special modified PVC materials drives the transformation of products from general building raw materials to high-end special materials for medical, food and automotive sectors, boosting the added value of products in overseas markets.

5. Green, Low-Carbon and Sustainable Development: Benchmark Environmental Factory of the Industry

The enterprise prioritizes safety and environmental protection. All pollutant discharge and energy-saving projects have passed acceptance inspection by the Department of Ecology and Environment of Xinjiang Uygur Autonomous Region, with multiple low-carbon renovations delivering tangible benefits.

1. Energy-saving and consumption reduction renovations: 26 waste heat recovery projects have been implemented to replace coal-fired steam generation with waste heat, cutting steam consumption by 30 tons per hour. A dual-dimensional digital analysis model for energy and material consumption has been built to continuously optimize calcium carbide consumption per ton of PVC, saving over RMB 100 million production costs annually.
2. Low-carbon energy expansion: Complementary operation of photovoltaic power stations and self-owned thermal power plants reduced the enterprise’s carbon intensity by 8.73% year-on-year in 2025, saving RMB 8.45 million in carbon costs.
3. Garden-style green factory: Large-area greening inside the plant and full coverage of waste gas desulfurization and denitrification facilities ensure stable compliance discharge of waste gas and wastewater. The factory has been awarded the title of National Green Manufacturing Factory, serving as a model for green transformation of chlor-alkali enterprises in Northwest China.

6. Strategic Positioning & Industrial Value

1. Core production pillar of the group: The company undertakes more than half of Zhongtai Chemical’s total PVC and caustic soda production capacity. It consumes local mineral resources in Xinjiang, stabilizes domestic supply of basic chemical raw materials, and provides stable goods sources for the group’s overseas foreign trade platforms.
2. Backbone of regional economy: As the core contributor to Fukang City’s industrial output value, the enterprise drives local employment, logistics and supporting processing industries, facilitating high-quality upgrading of the coal chemical industrial cluster along the northern foot of the Tianshan Mountains.
3. Transformation model of the industry: It realizes the transformation of traditional high-energy-consuming chemical plants into intelligent, low-carbon and circular new material enterprises, providing replicable practical experience for the green and digital upgrading of domestic calcium carbide-based chlor-alkali industry.
4. Belt and Road industrial pivot: Leveraging the policy advantages of the China (Xinjiang) Pilot Free Trade Zone, the enterprise collaborates with domestic and overseas foreign trade platforms to open westward export channels for inland chemical products and boost the export of China’s basic chemical raw materials to Eurasian markets.

7. Future Development Plan

Relying on policy dividends from the China (Xinjiang) Pilot Free Trade Zone, Fukang Energy will push forward three major development directions: first, expand the production capacity of high-end food-grade and medical special PVC resin; second, fully promote mercury-free catalyst technology and complete the replacement of low-carbon processes across all production lines; third, deepen full-process management via digital twin technology and expand the installed capacity of clean photovoltaic power generation. The company will strengthen production and sales coordination with Xinjiang Zhongtai Import and Export Co., Ltd. and Zhong Tai International Development (HK) Limited to further expand the global trade market of chemical raw materials.