Tai'an Yarong Biotechnology Co., Ltd. was established on January 24, 2017. The type of our company is a limited liability company (invested by natural persons); the domicile of our company is South of east end of Shiguhe Avenue, Ciyao Chemical Industry Park, Ningyang County, Tai'an City, Shandong Province, China; our legal representative is Wu Taotao, and our registered capital is CNY 70 million.
Tai'an Yarong Biotechnology Co., Ltd. Tai'an Bojiadian Welfare Chemical Factory was located in Zhuang Town, Taishan District, Tai'an City, Shandong Province before the relocation, was wholly-owned by Wu Taotao in June 2016; Chengjiang Zhicheng Phosphorus Chemical Co., Ltd. signed a long-term and stable cooperation with Tai'an Bojiadian Welfare Chemical Factory, can provides stable support for the consumption of yellow phosphorus. Before the relocation of Tai'an Bojiadian Welfare Chemical Factory, it had a production capacity of 34,000 tons/year of Phosphorus trichloride.
With the continuous development of cities and the gradual expansion of the scale of enterprises, the development of enterprises has posed a threat to urban security, and their own development has also been severely restricted. According to the "Shandong Province Hazardous Chemicals Safety Management Measures" (Shandong Province Government Order No. 309) and the "Notice of the General Office of the Shandong Province People's Government on Issuing the Interim Regulations on the Administration of Chemical Investment Projects in Shandong Province" (Luzhengbanzi [2017] 215 No.), it requires that "the existing production and storage units of hazardous chemicals whose production devices and storage facilities are not in the areas where hazardous chemicals are concentrated shall gradually move into the chemical park (concentration area) in accordance with the industrial layout policy". In June 2017, the Shandong Province Government held a provincial government party group meeting to thoroughly study and implement the spirit of General Secretary Xi Jinping's series of important speeches on production safety, and to study and deploy work such as the transformation and upgrading of the chemical industry's production safety. In response to the government's call, Tai'an Yarong Welfare Chemical Factory took advantage of the situation and established Tai'an Yarong Biotechnology Co., Ltd., and then moved the company to the Biochemical High-tech Industrial Park, Ningyang County Economic Development Zone, Tai'an City, Shandong Province for industrial relocation and upgrading.
After investigation, Tai'an Yarong Biotechnology Co., Ltd. decided to use the opportunity of the relocation of production equipment to make the company bigger and stronger, and strive to be a new chemical enterprise with outstanding main products, complete supporting products, and comprehensive utilization of resources. Relying on strong technical reserves, our company plans to occupy an area of about 53,360 square meters. After the relocation, our main products are still Phosphorus trichloride. During the relocation process, our company will carry out industrial upgrades and appropriately expand the product scale, increase product varieties, and upgrade and support the upstream and downstream industrial chains of Phosphorus oxychloride, Phosphorus pentoxide, Phosphorus, red, Flame Retardant and polyether polyol to meet the needs of enterprise development.
Phosphorus series and Flame Retardant series product transformation, upgrading and relocation project is located in the biochemical high-tech industrial park, Ningyang County Economic Development Zone, Tai'an City, Shandong Province, with geographic coordinates (latitude 35°54′58″ north, longitude 117°08′12″ east ), that is, west of Lingshan Avenue and south of Shiguhe Avenue in Ningyang County Economic Development Zone, with an area of about 53,360 square meters. Ningyang Biochemical High-tech Industrial Park was established in May 2002 and was approved by the province government in March 2006 as a province-level development zone, with a planned total area of 80 square kilometers and a built-up area of 6.2 square kilometers. Ther are highways and railways crisscrossing in the park. JingFu Expressway, National Highway 104, and Beijing-Shanghai Railway run from north to south. Rizhao-Changzhi Railway and Mengguan Highway run from east to west, thus we enjoy convenient transportation and outstanding location advantages.
Tai'an Yarong Biotechnology Co., Ltd. was relocated from Tai’an District, Tai’an City to Ningyang County Chemical Park after transformation and upgrading. Before the relocation, our company only had a production capacity of 34,000t/a of Phosphorus trichloride products. After the relocation, we not only retained the original product scale, but also took the opportunity to carry out transformation and upgrading. Through realizing product diversification and expanding the product chain vertically, we improved the company's comprehensive anti-risk capability and market competitiveness.
The fixed asset investment was CNY 250 million. Due to the increase in material prices, the actual investment in fixed assets is CNY 300 million (including civil engineering 100 million, equipment and electrical appliances 100 million, safety investment 30 million, environmental protection investment 25 million, fire protection investment 15 million, and other total 30 million). The main facilities include phosphorus oxychloride/trichlorination plant, Flame Retardant plant, storage tank area, warehouse, comprehensive building, central control room, boiler room emergency wastewater, waste gas treatment facilities and other related auxiliary facilities. The project scale is: 100,000 tons/year of Phosphorus oxychloride, 120,000 tons/year of Phosphorus trichloride and 80,000 tons/year of Flame Retardant. The annual income of Phosphorus trichloride is CNY 600 million, Phosphorus oxychloride is CNY 600 million, Flame Retardant is CNY 1.04 billion, and the total annual income can reach CNY 2.24 billion. It is estimated that the local profits and taxes will be more than CNY 45 million, and the local employment can reach 220 people. Because of using advanced and reliable production technology, it has the supplying advantage of main raw material liquid chlorine, the price is low, and its products are relatively risk-resistant.Moreover, the outsourced raw material yellow phosphorus, there are long-term cooperative customers in Yunnan, and long-term cooperative transportation companies to transport raw materials and products for external sales. The product Phosphorus trichloride can be sold as a finished product, or as a semi-finished product for further processing and production as Phosphorus oxychloride; a part of Phosphorus oxychloride can be made into TCPP, TCEP, BDP and TEP Flame Retardants, the price of raw materials is relatively advantageous, the industrial chain is relatively complete, and the types of product production can be adjusted according to market demand. The technology is a common technology at home and abroad, the production process is stable, and the product quality is excellent. Now, our products are welcomed by users inside and outside the province, and we have established a stable sales network. Thus our development prospects are very good, the products are used in many fields, and the market demand is very strong. Tai'an Yarong Biotechnology Co., Ltd. has broad prospects and considerable profits, and we will definitely become the pillar industry of Ningyang Economic Development Zone.
