MIRA INFORM REPORT

Report Date :

07.09.2011

IDENTIFICATION DETAILS

Name :	DAIREN CHEMICAL CORPORATION

Registered Office :	9/F 301 Sung Chiang Road, Road 104, Taipei,

Country :	Taiwan

Year of Establishment :	1979

Legal Form :	Private Parent Company

Line of Business :	Manufacturer of petrochemicals including VAM, EVA emulsion and powder and ethylacetate, 1-4 Butanediol, MPO, PTG

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Taiwan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

Company name & address

Dairen Chemical Corporation

9/F 301 Sung Chiang Road

Road 104

Taipei,

Taiwan

Tel: 886 (2) 2502 0238

Fax: 886 (2) 2509 9619

Web www.dcc.com.tw

Synthesis

Employees: 160

Company Type: Private Parent

Corporate Family: 3 Companies

Incorporation Date: 1979

Financials in: USD (Millions)

Reporting Currency: US Dollar

Annual Sales: 14,400.0

Total Assets: NA

Business Description

Manufacture of petrochemicals including VAM, EVA emulsion and powder and ethylacetate, 1-4 Butanediol, MPO, PTG

Industry

Industry Chemical Manufacturing

ANZSIC 2006: 1812 - Basic Organic Chemical Manufacturing

NACE 2002: 2414 - Manufacture of other organic basic chemicals

NAICS 2002: 325199 - All Other Basic Organic Chemical Manufacturing

UK SIC 2003: 2414 - Manufacture of other organic basic chemicals

US SIC 1987: 2869 - Industrial Organic Chemicals, Not Elsewhere Classified

Key Executives

Name Title

Shien-Chang Chen General Manager

Suhon Lin Chairman

News

Title	Date
Research and Markets: Tetrahydrofuran - 2011 Global Strategic Business Report Business Wire (630 Words)	23-Jun-2011
Status quo and outlook of China's BDO industry. China Chemical Reporter (2334 Words)	21-May-2011
Global and China 1,4-Butanediol BDO Industry Report, 2010-2011 Investment Weekly News (462 Words)	18-May-2011
Research and Markets: Global and China 1,4-Butanediol (BDO) Industry Report, 2010-2011 Business Wire (609 Words)	6-May-2011
Global Tetrahydrofuran Market to Exceed 800 Thousand Tons by 2017, According to a New Report by Global Industry Analysts, Inc. PR Web (549 Words)	8-Apr-2011

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location

9/F 301 Sung Chiang Road

Road 104

Taipei, Taiwan

Tel: 886 (2) 2502 0238

Fax: 886 (2) 2509 9619

Web www.dcc.com.tw

Sales USD(mil): 14,400.0

Assets USD(mil): NA

Employees: 160

Industry: Chemical Manufacturing

Incorporation Date: 1979

Company Type: Private Parent

Quoted Status: Not Quoted

General Manager: Shien-Chang Chen

· Industry Codes

· Business Description

· Financial Data

· Subsidiaries

Industry Codes

ANZSIC 2006 Codes:

1812 - Basic Organic Chemical Manufacturing

NACE 2002 Codes:

2414 - Manufacture of other organic basic chemicals

NAICS 2002 Codes:

325199 - All Other Basic Organic Chemical Manufacturing

US SIC 1987:

2869 - Industrial Organic Chemicals, Not Elsewhere Classified

UK SIC 2003:

2414 - Manufacture of other organic basic chemicals

Business Description

Manufacture of petrochemicals including VAM, EVA emulsion and powder and ethylacetate, 1-4 Butanediol, MPO, PTG

More Business Descriptions

All Other Chemical Product and Preparation Manufacturing

Financial Data

Financials in: USD (mil)

Financials in:	USD(mil)

Revenue:	14,400.0

1 Year Growth

Subsidiaries

Company Percentage

Owned Country

Dairen Chemical (M) Sdn Bhd 100% MALAYSIA

Dairen Chemical (Jiangsu) Co Ltd 100% PEOPLE'S REPUBLIC OF CHINA

Corporate Family	Corporate Structure News:
	Dairen Chemical Corporation
Total Corporate Family Members: 3

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Dairen Chemical Corporation	Parent	Taipei	Taiwan	Chemical Manufacturing	14,400.0	160
Dairen Chemical (M) Sdn Bhd	Subsidiary	Pasir Gudang, Johor	Malaysia	Chemical Manufacturing	45.5	56
Dairen Chemical (Jiangsu) Co., Ltd.	Subsidiary	Yangzhou	China	Chemical Manufacturing	1.0

Executive

Board of Directors

Name

Title

Function

Suhon Lin

Chairman

Executives

Name

Title

Function

Shien-Chang Chen

General Manager

Chief Executive Officer

Corporate Structure News

Business Wire: 23 June 2011

[What follows is the full text of the news story.]

DUBLIN--(BUSINESS WIRE)-- Research and Markets

(http://www.researchandmarkets.com/research/1f3b53/tetrahydrofuran) has announced the addition of the "Tetrahydrofuran - Global Strategic Business Report" report to their offering.

This report analyzes the worldwide markets for Tetrahydrofuran in Thousand Metric Tons by the following end-use segments- PTMEG - (Polytetra Methylene Ether Glycol), and Solvent. The report provides separate comprehensive analytics for the US, Japan, Europe, Asia-Pacific, and Rest of World. Annual estimates and forecasts are provided for the period 2009 through 2017. Also, a six-year historic analysis is provided for these markets.

The report profiles 37 companies including many key and niche players such as

· BASF SE (US)

· Dairen Chemical Corporation (DCC) (China)

· International Specialty Products, Inc. (US)

· Invista (US)

· Mitsubishi Chemical Corporation (Japan)

· Penn A Kem LLC (US)

· Saudi International Petrochemical Company (Saudi Arabia)

· TCC Chemical Corporation (Taiwan)

· Shanxi Sanwei Group Co., Ltd. (China)

· Sinochem International Corporation (China)

· Zibo Linzi Bingqing Fine Chemical Factroy (China)

Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

Key Topics Covered: To view the full table of contents, click the link - Tetrahydrofuran - 2011 Global Strategic Business Report

1. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

2. INDUSTRY OVERVIEW

A Prelude

· Note on Recovery in Chemical Industry Post Recession

· Current & Future Analysis

· Analysis by Geographic Region

· Analysis by End-Use Segment

· Price Scenario

· THF Goes Green

· Competitive Landscape

3. PRODUCT OVERVIEW

· Introduction

· Chemical Properties

· Stability & Reactivity of THF

· Production Processes

· THF Recovery

· Extractive Distillation Process

· THF Peroxides

· Hazards Associated with THF Peroxide

· Stabilizers

· Applications of THF

· Possible Harmful Effects

· Environmental Effects

· Storage, Handling & Transportation Precautions

· General Precautions

· Protection against Fire

· Peroxide Formation

· Spills/Leaks

· Toxicity

· Personal Protection

· Storage Precautions

· Storage Tanks

· Pumps

· Seals and Lubricants

· Vacuum and Pressure Relief

· Vapor Return-Line and Level Indicators

· Precautions during Environmental Disposal

4. TETRAHYDROFURAN VALUE-CHAIN

· Peek into Industrial Uses

· PTMEG - A Major End-Use Market

· Use as a Resin Solvent

· Magnetic Tape

· Coatings

· Adhesives

· PVC Cements

· Cellophane and Vinyl Films

· Specialty Coating-Systems

· Reaction Solvent

· Pharmaceutical Solvent Applications

· Laboratory Usage

· Reaction Medium

· Extractant

· Starting Material in Syntheses

5. GLOBAL BUTANEDIOL MARKET: A REVIEW

· - Introduction

· Butanediol Market by Region

· Major End-Use Markets

· Polybutylene Terephthalate (PBT)

· Gamma-Butyrolactone (GBL)

· Key Product Applications

6. RECENT INDUSTRY ACTIVITY

· Invista to upgrade its Texas Facilities

· Mitsubishi Chemical and BASF Ink Agreement

· BASF Changes Feedstock Supply for PolyTHF Plant

· Sinopec Yizheng Chemical Fiber to Establish BDO Facility

· Penn A Kem Acquires Renewable Chemical Assets of Penn Specialty Chemicals

· Yangquan Coal Industry Merges with Shanxi Sanwei Huabang Group

· Lurgi Zimmer Receives Contract from Xinjiang Blue Ridge Tunhe

· Chemical Industry

· International Specialty Products Expands Tetrahydrofuran Capacity

· Pidilite Industries Receives Government Approval

7. FOCUS ON SELECT GLOBAL PLAYERS 8. GLOBAL MARKET PERSPECTIVE

9. THE UNITED STATES

10. JAPAN

11. EUROPE

12. ASIA-PACIFIC 13. REST OF WORLD

COMPETITIVE LANDSCAPE Region/Country Players

· The United States 11

· Japan 2

· Europe 7

· Germany 3

· The United Kingdom 3

· Rest of Europe 1

· Asia-Pacific (Excluding Japan) 21

China Chemical Reporter: 21 May 2011

[What follows is the full text of the news story.]

1 Status quo of China's 1,4-butanediol industry

1.1 Capacity utilization of existing BDO plants is low

In 2010, with a newly added 1,4-butanediol (BDO) capacity of 75 000 t/a, China's total BDO capacity reached 424 000 t/a. Major BDO producers in China include Shanxi Sanwei Group, Xinjiang Markor Chemical Co Ltd, Nanjing Bluestar Chemical New Materials Co Ltd (Nanjing Bluestar) and Dairen Chemical (Jiangsu) Co Ltd. The four companies account for 71% of China's total BDO capacity. Large BDO enterprises have significantly stronger competitiveness than small ones, having good economic returns. Major BDO producers in China in 2010 are listed in Table 1.

Table 1 Major BDO producers in China in 2010

Company Capacity Process Startup

(thousand

t/a)

Shanxi Sanwei Group 75 Reppe process 2002-2006

75 Maleic anhydride 2010

process

Xinjiang Markor Chemical 60 Reppe process 2008

Co Ltd

Nanjing Bluestar 55 Maleic anhydride 2009

Chemical New Materials process

Ltd

Dairen Chemical 36 Allyl alcohol process 2005

(Jiangsu) Co Ltd

Sichuan Tianhua Co Ltd 25 Reppe process 2006

Shaanxi Bidiou Chemical 30 Reppe process 2009

Co Ltd

Shandong Zhongya 13 Maleic anhydride 1999

Chemical Co Ltd process

Meizhouwan Chlor-Alkali 30 Reppe process 2009

Chemical Ltd

Yunnan Yunwei Group Co 25 Reppe process 2009

Ltd

Total 424

In 2010, China's BDO output was about 260 000 tons, and the operating rate of the BDO industry was about 61%. The low operating rate of the existing BDO plants was mainly caused by the following reasons: (1) the BDO units of Meizhouwan Chlor-Alkali Chemical Ltd and Yunnan Yunwei Group Co Ltd were completed in the end of 2009, and the operating rate of the new units was unstable in 2010; (2) the new maleic anhydride process-based BDO unit of Shanxi Sanwei Group was delayed to be officially put into operation until the second half of 2010 due to the shortage of hydrogen supply and other issues; (3) other BDO units frequently shut down for maintenance due to the short supply of raw materials and replacement of catalysts; (4) the tightening energy-saving and emission reduction policy made some BDO producers face electricity shortage and thus reduced their production.

1.2 Dependence on imports has decreased significantly

In 2010, China's net import volume of BDO was about 85 000 tons, decreasing about 50 000 tons compared to the previous year, down 37.1% year on year.

Prior to 2010, due to the insufficient supply of BDO in mainland China and the rapid growth of downstream demand, China imported large quantities of BDO from China's Taiwan province, South Korea and the Middle East over recent years. With the rapid growth of domestic BDO capacity, the self-sufficiency rate of BDO in China has been greatly raised, and China's dependence on imported BDO dropped from 61% in 2005 down to about 25% in 2010. The country's BDO imports and dependence on imports in recent years are shown in Figure 1.

[FIGURE 1 OMITTED]

In 2010, the net import volume of BDO had a significant decline. In addition to domestic supply growth, there are the following reasons for this: (l)in 2010, BASF shut down its 50 000 t/a BDO unit in Ulsan, South Korea; (2)in 2010, the world economy further recovered; driven by automotive and electronics industries, European and American market demand for polybutylene terephthalate (PBT) grew rapidly, and part of BDO produced in Korea and Saudi Arabia was sold to Europe and the USA; (3) at the end of 2009, China began to levy anti-dumping duties on BDO imported from Saudi Arabia and China's Taiwan region; (4) in 2010, BASF and Lyondell Basel announced the suspension of BDO production due to force majeure at the same time; (5) BDO import prices were much higher than domestic BDO prices.

1.3 Downstream demand grows rapidly

In 2010, China's apparent consumption of BDO was about 345 000 tons, up 9.5% year on year. The consumption of BDO was still mainly concentrated in tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamabutyrolactone (GBL) and polyurethane slurry areas.

Driven by domestic demand growth and international economic recovery, China's textile and garment industry has first walked out of the bottom after the financial crisis and stimulated the demand for spandex. The healthy development of the spandex industry boosts the demand for THF. In 2010, China's THF industry consumed about 150 000 tons of BDO, accounting for 43.5% of the apparent consumption of BDO; PBT is the second-largest consumer of BDO. The rapid development of automotive and electronics industries has effectively stimulated the development of the polyurethane (PU) industry, thereby boosting the demand for BDO. In 2010, PBT accounted for about 26.1% of the apparent consumption of BDO; and GBJL was the third largest derivative of BDO and accounted for about 14.5% of the apparent consumption of BDO. As the traditional consumer area of BDO, polyurethane slurry (liquid sole, synthetic leather) also maintained a good development in 2010 and accounted for about 13.0% of the apparent consumption of BDO. In addition, the uses of BDO in plasticizers, pharmaceutical intermediates and other areas also increased.

During 2005-2010, China's demand for BDO grew 20% annually. In recent years, the supply and demand of BDO in China are shown in Table 2.

Table 2 Supply and demand of BDO in China (thousand t/a, thousand

tons, %)

Year Capacity Output Net imports Apparent Self-sufficiency

consumption rate

2005 81 55 86 141 39

2006 149 98 68 166 59

2007 149 128 106 234 54.3

2008 209 144 108 252 57.1

2009 349 180 135 315 57.1

2010 424 260 85 345 75.4

1.4 Market prices rise sharply

In 2010, BDO prices in China grew substantially but declined slightly in the end of the year. Different from foreign BDO units that generally use the maleic anhydride process, most of China's existing BDO units use the Reppe process. In 2010, the capacity of Reppe-based BDO in China totaled 245 000 t/a, accounting for 57.8% of the national total. Compared to other basic organic raw materials, China's BDO market prices are not very closely correlated to international oil prices, as shown in Figure 2.

[FIGURE 2 OMITTED]

In the first half of 2010, BDO prices in China climbed all the way from about RMB13 000 /t in the beginning of the year up to about RMB19 000 /t, and the supply of BDO once fell short. But after June, BDO prices began to go down slowly. BDO prices continued to decline in July. Because the market demand gradually entered the offseason, BDO prices in August fell to about RMB16 000-17 000 /t. Thereafter, due to the "joint pull-up" effect of BDO producers, domestic BDO prices began to go up again. In September, the BDO price rose to about RMB19 000 It. With the rise of raw materials prices and the promotion of downstream demand, since October, the domestic BDO price continued to rise. In December, some downstream demand started to decrease, but the supply of BDO increased over the same period. The change in the market supply and demand made BDO prices went down slightly in the end of 2010.

BDO price fluctuations are mainly caused the following factors:

(1) Fluctuations of basic raw material prices. In the world, BDO plants mostly use the maleic anhydride process. Maleic anhydride accounts for a large proportion of the production cost of BDO, but maleic anhydride prices are directly affected by the ups and downs of international crude oil prices, thereby affecting the production cost of BDO. In China, the BDO production is dominated by the Reppe process, which uses acetylene and formaldehyde as the raw materials. Right now, the capacity of calcium carbide is excess in China, so the supply of acetylene is adequate. The production cost of BDO by the Reppe process is relatively less affected by the ups and downs of international crude oil prices. Despite this, driven by high oil prices, BDO prices in China also go up.

(2) Seasonal variability. From historical data, every year the domestic BDO market has two peak seasons - one from April to May, and the other from September to October. During the peak seasons, downstream demand increases dramatically, the operating rate of BDO plants rises, and BDO prices also go up.

(3) The trading behavior is also an important factor for price fluctuations. In 2010, the self-sufficiency rate of BDO in China significantly increased to 75%, but imported BDO products still have huge impacts on the market price of BDO. Whenever a large volume of BDO is imported into the Chinese market, domestic BDO prices will tend to decline. In addition, speculation also often leads to the market price volatility.

(4) As the global supply of BDO was tense, global BDO prices went up in 2010 as a whole.

2 Outlook of China's BDO Industry in 2011

2.1 Overcapacity will become evident due to new capacity outbreak

New BDO units that are expected to put into operation in China in 2011 include: Zhejiang Huachen Energy Company Limited-s 50 000 t/a unit and Nanjing Bluestar's 55 000 t/a unit. Their total new capacity reaches 105 000 t/a. So in the end of 2011, China's total BDO capacity is expected to reach 529 000 t/a, up 24. 8% year on year. Compared to 2010, China's BDO Industry will usher in a new round of new capacity outbreak in 2011. Driven by the continuing rapid growth of the downstream demand, new BDO capacity once again broke out in China in the last two years. In 2011, China's BDO output is expected to reach about 350 000 tons, up 34% year on year.

Due to the gradual decrease of investment and technology thresholds, the rapid growth of downstream demand and the imbalanced regional distribution of BDO capacity, many enterprises plan to build large BDO projects in China. In the next few years, China's BDO capacity will continue to grow rapidly. BDO projects that are now under construction or will be built in China before 2015 are listed in Table 3.

Table 3 BDO projects to be built in China before 2015 (thousand t/a)

Company Capacity Process Remarks

Zhejiang Huachen 50 Maleic anhydride startup in 2011

Energy Co Ltd process

Nanjing Bluestar 55 Maleic anhydride startup in 2011

process

Henan Hemei Group 50 Reppe process planned capacity 100

000 t/a, 1st-phase 50

000 t/a to be

completed in 2012

Shandong Zhongya 55 Maleic anhydride startup in 2012

Chemical Ltd process

Tianhua Fubang 60 Reppe process startup in 2012

Chemical Ltd

Xinjiang Markor 100 Reppe process start building in

Investment Group 2010, startup in 2013

Younglight Energy 100 Reppe process start building in

Chemical Ltd 2010, startup in 2012

Sinopec Yizheng 100 Maleic anhydride startup in 2012

Chemical Fiber process

Shandong Jiazhou 50 Maleic anhydride startup in 2012

Chemical Co Ltd process

Chongqing Jianfeng 60 Reppe process startup in 2012

Industrial Group

Henan Kaixiang 50 Reppe process Not to be built yet

Chemical Co Ltd

Inner Mongolia 60 Reppe process under design

Dongyuan Tech Ltd

Shaanxi Delin 60 Reppe process under pre-phase

Chemical Industrial preparation

Ltd

Chongqing Heyou - Agreement has

Alkaline Amine Ltd signed

As seen from Table 3, China's BDO capacity will grow rapidly in 2011-2013.

In addition, a number of industrial parks or enterprises also have plans to build BDO projects. By 2015, China's BDO capacity will reach about 1.1 million t/a. Its growth speed will far exceed the market demand growth rate, so serious overcapacity will appear.

2.2 Downstream demand will further grow rapidly, and new products will become new engines

Driven by the rapid development of textile & garment, automobile and electronics industries, new projects of downstream products of BDO will be gradually put into operation. New PBT and THF projects that will be put into operation in 2011 will need nearly 50 000 tons of BDO. This will stimulate the fast growth of the demand for BDO. But the spandex industry, the most important consumer area of BDO, has entered the mature stage. The demand for PTMEG is steady, so the growth of the demand for THF also slows down. Therefore, THF will have a stable demand for BDO.

PBT will be a new engine for the future growth of the demand for BDO. In 2011, China's new capacity of PBT will be 80 000 t/a, and China's total PBT capacity will reach 320 000 t/a. Its annual demand for BDO is about 130 000 tons. Since the recovery of automotive and electronics industries, the world market demand for PBT starts to grow, and China's demand for PBT grows even more significantly. The rapid development of the BPT industry growth will become the main force to boost the demand for BDO.

In addition, poly(butylene succinate) (PBS) and thermoplastic polyester elastomer (TPEE) have become the development hotspot of the industry. These products have great potential in the Chinese market and are now mainly imported from abroad. Due to high technical requirements and completed production processes, these new products generally have relatively high entry barriers, so they will have a good market space for a long time in the future. This would bring about opportunities for BDO producers who have advantages in raw materials, technology and finance to realize transformation and cultivate new businesses.

It is expected that in China in 2011, the consumption of BDO will remain a steady growth, and the apparent consumption of BDO will reach about 400 000 tons, up about 17% year on year, which is much lower than the supply growth of BDO over the same period.

2.3 The upstream and downstream integration will further improve

In 2011, the upstream and downstream integration level of China's BDO industry will be further enhanced. Zhejiang Huachen Energy Company Limited's 40 000 t/a maleic anhydride unit was put into operation in 2009, and its BDO project that will soon be completed and put into operation will co-produce THF and GBL. Nanjing Bluestar's new BDO project can co-generate 24 000 t/a THF and 3 000 t/a GBL.

It is expected that those BDO projects that will be completed and put into operation in 2012 will be integrated with their downstream units, such as THF, GBL and PTMEG units.

By Tu Qinghua, National Petroleum & Chemical Industry Planning Institute

Investment Weekly News: 18 May 2011

[What follows is the full text of the news story.]

Research and Markets (http://www.researchandmarkets.com/research/395be8/global_and_china_1) has announced the addition of the "Global and China 1,4-Butanediol (BDO) Industry Report, 2010-2011" report to their offering.

1, 4-butanediol (BDO) is an important raw material for basic organic chemicals and fine chemicals. Subject to the financial crisis, the global BDO capacity has showed sluggish growth, up merely 3.7% year on year in 2010. Due to high technology thresholds and limited raw material sources, the BDO production is highly concentrated. The world's major BDO manufacturers include Germany's BASF, Taiwan's Dairen, America's Lyondell and ISP, China'sShanxi Sanwei Group, with BDO capacity of 520 thousand tons, 256 thousand tons, 188 thousand tons, 153 thousand tons and 150 thousand tons respectively in 2010, accounting for nearly 60% of the world's total.

On the basis of analyzing the supply & demand, competition pattern and development of global BDO industry, this report lays emphasis on the research of current development, supply & demand, competition pattern and development of downstream industries of Chinese BDO industry.

China's BDO industry has grown up based on the introduction of advanced technologies from overseas. In 2010, China's BDO capacity increased 20.2% year on year. In terms of capacity, Shanxi Sanwei Group, accounting for 150 thousand tons (33.6%) of the total capacity in China in 2010, was the largest manufacturer of BDO in China. Xinjiang Markor and Nanjing Bluestar ranked second and third. Enterprises in Chinese Mainland, except Dairen Chemical (Jiangsu) Co., Ltd., generally adopt the Reppe method and maleic anhydride method in BDO production. With the restriction on high energy consumption industries and implementation of energy-saving and emission reduction policies in China, in the future, the percentage of BDO facilities adopting Reppe method will decrease, whereas maleic anhydride method will be increasingly adopted thanks to its advantages including small investment, high quality of products, low emission, capability of co-production of THF and GBL and controllable product ratio.

With regard to the demand, driven by the fast development of downstream spandex and PBT industries, the annual average compound growth rate of BDO consumption in China reached 21.9% in 2006-2010. In 2010, the demand for BDO in China totaled 366 thousand tons, up 18.1% year-on-year. In terms of the consumption structure of BDO, THF/PTMEG is the largest consumption market, followed by PBT.

This report not only analyses the status quo, supply and demand, competition pattern, price tendency, development of BDO industry as well as the development trends of downstream industries concerned, but also introduces in detail the current development, operation and prospect of key BDO manufacturers across China and beyond. Key Topics Covered: 1. Introduction to 1,4-butanediol (BDO)

2. BDO Industry Development Worldwide

3. BDO Industry Development in China

4. Development of BDO Downstream Industries

5. Major BDO Manufacturers Worldwide

Business Wire: 06 May 2011

[What follows is the full text of the news story.]

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/395be8/global_and_china_1) has announced the addition of the "Global and China 1,4-Butanediol (BDO) Industry Report, 2010-2011" report to their offering.

Key Topics Covered:

1. Introduction to 1,4-butanediol (BDO)

2. BDO Industry Development Worldwide

3. BDO Industry Development in China

4. Development of BDO Downstream Industries

5. Major BDO Manufacturers Worldwide

6. BDO Manufacturers in China

Companies Mentioned:

· BASF

· Dairen Chemical Corp.

· LYONDELL

· ISP

· DuPont

· INVISTA

· Nan Ya Plastics Corporation

· Shanxi Sanwei Group Co., Ltd.

· Xinjiang Markor Chemical Industry Co., Ltd.

· Bluestar New Chemical Materials Co., Ltd., Nanjing Company

· Shandong Dongying Shengli Zhongya Chemical Co., Ltd.

· Shaanxi Bidi'ou Chemical Co., Ltd.

· Fujian Meizhouwan Chlor-Alkali Chemical Industry Co., Ltd.

· Sichuan Tianhua Fubang Chemical Industry Co., Ltd.

· Sinopec Yizheng Chemical Fibre Co., Ltd.

· Hebi Coal Industry (Group) Co., Ltd.

· Chongqing Jianfeng Chemical Co., Ltd.

· Guodian Younglight Energy Chemical Group Co., Ltd.

For more information visit http://www.researchandmarkets.com/research/395be8/global_and_china_1

Research and Markets

Laura Wood, Senior Manager

press@researchandmarkets.com

U.S. Fax: 646-607-1907

Fax (outside U.S.): +353-1-481-1716

PR Web: 08 April 2011

[What follows is the full text of the news story.]

San Jose, CA (Vocus/PRWEB) April 08, 2011

Tetrahydrofuran (THF) is a highly flammable, clear, colorless liquid, used in production of polyurethane stretch fibers, coatings, adhesives, printing inks, magnetic tape and as a reaction solvent. THF ranks among the most crucial ethers. The highly volatile and general-purpose organic solvent, offers outstanding solvent strength for several organic substances.

With the global economy entering its second phase of recovery in 2011, the chemical sector is witnessing replenished demand in various end-use markets. Since the second quarter of 2010, recovery in the sector has followed a sharp V-shape trend, especially in China and East Asia. In developing nations of Latin America, emerging Europe, Africa and the Middle East, and Asia-Pacific, primarily in countries such as India, Brazil and China, rapid growth is expected over the next two years.

Asia-Pacific represents the largest regional market for THF, as stated by the new market research report on Tetrahydrofuran. Surging at an annual growth rate between 10% and 12%, the Asia-Pacific THF market is projected to surpass 400 thousand metric tons by 2015. China remains the major growth engine for THF worldwide, both in terms of demand and production levels. Development of THF market in the country is mainly attributed to the growing demand for spandex fibers that has stimulated the establishment of new PTMEG units.

Among the end-use markets, PTMEG represents both the largest as well as the fastest growing market for tetrahydrofuran. With global demand for green chemicals on the rise, players in the tetrahydrofuran market are increasingly shifting towards greener technologies that also offer sustainable competitive cost benefits. 2-Methyltetrahydrofuran (2MeTHF) produced from furfural process that uses corncobs and sugar cane as feedstock, is currently being popularized as an environment-friendly substitute for petroleum-based tetrahydrofuran.

Global tetrahydrofuran market is a consolidated market dominated by three leading players including BASF, Dairen Chemical Corporation and Invista. Select major players profiled in the report include BASF SE, Dairen Chemical, International Specialty Products, Invista, Mitsubishi Chemical Corporation, Penn A Kem LLC, Saudi International Petrochemical Company, Sinochem International Corporation, among others.

The research report titled ï¿½Tetrahydrofuran: A Global Strategic Business Reportï¿½ announced by Global Industry Analysts Inc., provides a strategic review of the key market trends, recent product launches, strategic corporate initiatives, and profiles of key market participants. The report provides annual sales estimates and projections for Tetrahydrofuran market for the years 2009 through 2017, and 2003 to 2008 by the following geographic markets - US, Japan, Europe, Asia-Pacific, and Rest of World. Key end-use segments analyzed include polytetramethylene ether glycol (PTMEG), and Solvents.

For more details about this comprehensive market research report, please visit ï¿½ http://www.strategyr.com/Tetrahydrofuran_Market_Report.asp

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China Chemical Reporter: 21 December 2010

[What follows is the full text of the news story.]

Vinyl acetate is mainly used to produce polyvinyl acetate, polyvinyl alcohol, vinyl acetate-ethylene (VAE) copolymer emulsion or copolymer resin, vinyl acetate-vinyl chloride copolymer, polyacrylonitrile copolymer and acetal resin. It has a wide range of uses in textile, coatings, adhesive, film, pharmaceutical, organic synthesis, fine chemical and daily chemical industries.

Currently, the production processes of vinyl acetate in the world mainly include the ethylene method and the acetylene method. Due to its greater advantages in process and economy, the ethylene method accounts for most of the global vinyl acetate capacity. The acetylene method is almost only used by Chinese manufacturers.

Reportedly, as of the end of 2009, the world's total vinyl acetate capacity had reached about 6.86 million t/a, and China's vinyl acetate capacity was 1.583 million t/ a, accounting for about 23% of the global total. In 2009, China produced about 1.1 million tons of vinyl acetate. Out of China's total vinyl acetate capacity, the combined capacity of the calcium carbide-based acetylene method was 845 000 t/a, accounting for about 53.4% of total, the combined capacity of the natural gas-based acetylene method was 210 000 t/a, accounting for 13. 6% of total, and the combined capacity of the ethylene method was 528 000 t/a, accounting for 33.0% of total. Celanese (Nanjing) Chemical Co Ltd is now China's largest vinyl acetate manufacturer with a vinyl acetate capacity of 300 000 t/a, accounting for 19.4% of China's total. Sinopec Sichuan Vinylon Works is the second largest with a vinyl acetate capacity of 210 000 t/a, accounting for 13.6% of China's total. Anhui Wanwei Updated High-Tech Material Industry Co Ltd ranks the third by a capacity of 155 000 t/a, accounting for 10. 0% of China's total.

In the next few years, China will still build a few new or expanded vinyl acetate units. Sinopec Sichuan Vinylon Works' new 300 000 t/a vinyl acetate unit that was launched in 2008 was planned to start up at the end of 2010, Yibin Tianyuan Group Company Limited's subsidiary launched a 240 000 t/a vinyl acetate project in Yunnan province, Sinopec Beijing Dongfang Petrochemical Company intends to expand its existing vinyl acetate capacity to 180 000 t/a, Yankuang Lunan Chemical Fertilizer Plant planned to build a 200 000 t/a vinyl acetate unit; Hubei Yihua Chemical Industry Co Ltd planned to build a 300 000 t/a vinyl acetate unit, and Yunnan Yunwei Co Ltd announced a plan to increase its vinyl acetate capacity by 50 000 t/a at Baoshan site in 2011. In addition, the company also planned to build a 200 000 t/a vinyl acetate unit in Qujing in 2011, Jiangsu Changlian Chemical Co Ltd planned to build a 360 000 t/a vinyl acetate project at the Yangzhou Chemical Industry Park, Inner Mongolia Mengwei Technology Co Ltd wanted to set up a 200 000 t/a vinyl acetate plant, and Jiangsu SOPO (Group) Co Ltd intends to use the DuPont technology to construct a 330 000 t/a vinyl acetate plant in Zhenjiang, Jiangsu province. It is expected that by 2015, China's total vinyl acetate capacity will be more than 2.6 million t/a.

Supply and Consumption of Vinyl Acetate in China (thousands tons)

Year Output Import Export Consumption

2003 847 148 4 991

2004 960 147 3 1 104

2005 1 010 152 1 1 161

2006 1 051 215 0.3 1 266

2007 1 074 279 1 1 352

2008 1 210 255 12 1 453

2009 1 100 256 0.2 1 356

2010 Jan-Oct - 192 17.9 -

In recent years, due to the rapid growth of vinyl acetate downstream industries in China, China's vinyl acetate volume imported has continued to increase. According to statistics from China General Administration of Customs, China imported 146 100 tons of vinyl acetate in 2002, 214 900 tons in 2006 and 278 900 tons in 2007, creating a record high. In 2008, due to the global economic crisis and the rapid growth of domestic vinyl acetate capacity, the volumeimported declined slightly. In 2009, it was 256 100 tons, up about 0.4% year on year.

China mainly imports vinyl acetate from Taiwan province, the United States, Japan and South Korea. In 2009, China imported 238 600 tons of vinyl acetate from these four countries and region, up about 7.6% year on year. The imported vinyl acetate products mainly come from US based Celanese Corporation, Taiwan Dairen Chemical Corporation, Celanese Singapore Pte Ltd and the Nippon Synthetic Chemical Industry Company.

In China, Jiangsu, Guangdong, Shanxi and Zhejiang provinces and Shanghai municipality import vinyl acetate. In 2009, the total vinyl acetate import volume of the five places reached 245 400 tons, up about 4. 9% year on year, of which Jiangsu province accounted for about 65.2%. In 2009, major vinyl acetate importers are Changchun Chemical (Jiangsu) Co Ltd, Dairen Chemical (Jiangsu) Co Ltd, Nantong Chemical & Light Industry Co Ltd (a trader), Guangzhou Metal & Minerals Imp. & Exp. Ltd (a trader). Shanxi Sanwei Group Co Ltd, Celanese (Shanghai) International Trade Co Ltd and Zhangjiagang Yueyang Industrial Co Ltd. Their combined imports accounted for 50.24% of the nation's total.

In recent years, the average price of imported vinyl acetate has constantly risen. In 2004, it was only US$819.8/t. But in 2008, it grew to US$1 267.5/t, up 13.3% year on year. In 2009, due to the impact of the global economic crisis and a sharp drop in crude oil prices, it fell to about US$769. 9/t, down about 39.3% year on year.

In recent years, the development of China's textile, construction and paper industries has driven up the demand for housing decoration and thus boosted the demand for paints and other products. This has stimulated the rapid growth of demand for vinyl acetate in China. In 2003, China's consumption of vinyl acetate was only 990 500 tons. In 2008, it grew to 1.453 million tons, up 6.77% year on year. In 2009, China's consumption of vinyl acetate fell to 1.3559 million tons, down about 6.68% year on year.

In China, vinyl acetate is mainly used to produce polyvinyl alcohol, which accounted for about 75% of total vinyl acetate consumption in 2009. Vinyl acetate is also used for the production of polyvinyl acetate and ethylene-vinyl acetate (EVA) copolymer, which account for about 21% of China's total. Four percent of vinyl acetate is used for other purposes. With economic development, China's consumption structure of vinyl acetate has changed dramatically. In 2015, China's total demand for vinyl acetate is predicted to reach about 2.1 million tons. By then, although the demand for vinyl acetate from the polyvinyl acetate industry will still have a dominant position in the consumption structure of vinyl acetate, its proportion will reduce slightly. Polyvinyl acetate, VAE copolymer emulsion and EVA will become the main force to drive the growth of the demand for vinyl acetate in the future. Their proportion in the consumption structure of vinyl acetate will be increasing.

In the next few years, as new or expanded vinyl acetate projects are gradually put into operation, it is expected that by 2015, China's total vinyl acetate capacity will be more than 2.6 million t/ a, but China's annual demand for vinyl acetate will be only about 2.1 million tons. With overcapacity, the vinyl acetate market competition will gradually increase in China.

In the past two years, the market price of vinyl acetate has been fluctuating in China. In October and November of 2007, it was as high as RMB15 000/t. Later on, it declined. In December 2008, it fell to about RMB5 900/t, indicating a four-year low. In the first nine months of 2009, it was between RMB6 000/t and RMB6 800/t. In December, it rose to about RMB7 600/t. In the first three quarters of 2010, it fluctuated between RMB6 500/t and RMB7 100/t. After October, due to the rise of other goods prices in China, the market price of vinyl acetate suddenly rose to RMB8 000/t.

The global vinyl acetate capacity has been in excess. In the future, the market competition of vinyl acetate will be mainly concentrated in the Asia and Pacific region. After years of development, China's vinyl acetate industry has made some progress, but most of its plants still use the relatively backward calcium carbide-based acetylene method, which has a smaller production scale and a relatively high production cost and can bring about certain pollution to the environment. In addition, vinyl acetate is mainly used for the production of polyvinyl alcohol and a few other products in China, so its consumption structure is relatively monotonous. Some high-end derivatives of vinyl acetate still need to use imported vinyl acetate.

China's vinyl acetate imports by source (thousand tons)

From 2008 2009 Growth YoY, %

Taiwan prov 119.5 115.1 -3.7

USA 47.4 69.7 47.1

Japan 39.0 21.8 -44.1

Singapore 29.9 17.5 -41.5

Korea 15.9 32.0 101.3

Other 3.4 0 -

Total 255.1 256.1 0.39

Vinyl acetate imported by China's region (thousand tons)

Province 2008 2009 Growth YoY, %

Jiangsu 154.2 166.9 8.2

Guangdong 22.8 38.1 67.1

Zhejiang 15.9 11.1 -30.2

Shanghai 2.0 12.8 13.9

Fujian 7.9 9.0 540.0

Shanxi 39.1 16.5 -57.8

Heilongjiang 12.8 0.0 -

Other 0.4 1.7 325.0

Total 255.1 256.1 0.4

Business Wire: 15 October 2010

[What follows is the full text of the news story.]

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/0b7b4d/global_and_china_1) has announced the addition of the "Global and China 1,4-Butanediol (BDO) Industry Report, 2009-2010" report to their offering.

1,4-butanediol (BDO) is an important raw material for basic organic chemicals and fine chemicals. With the increasing demand from spandex, PBT and GBL industries, the global BDO capacity has been soaring in recent years, to about 2.119 million tons in 2009, up 12.1% year on year. However, a large proportion of capacity is for self use of BDO manufacturers, and the actual global BDO supply is far less than the capacity, and was no more than 1.519 million tons in 2009.

Due to high technology thresholds and limited raw material sources, the global BDO industry features high market and regional concentration. The worlds major BDO manufacturers include Germanys Basf, Taiwans Dairen, Americas Lyondell and ISP, Chinas Shanxi Sanwei Group Co., Ltd, whose annual BDO capacity collectively totaled 1.267 million tons in 2009, accounting for 59.8% of the worlds total. Asia, Europe and North America are the worlds main BDO manufacturing bases, accounting for 54.9%, 22.8% and 22.3% of the global BDO capacity respectively. In particular, Mainland China boasts the largest BDO capacity with the fastest growth in Asia. In 2009, the BDO capacity of Mainland China hit 446,000 tons, up 96.5% over 2008.

Chinas BDO industry has grown up based on the introduction of advanced technologies from industry giants such as Basf, Davy, and INVISTA. However, with concern over raw material sources, enterprises in mainland China, except Dairen Chemical (Jiangsu) Co., Ltd., generally adopt the acetylene Reppe method and maleic anhydride method in BDO production. Furthermore, as the acetylene Reppe method has obvious cost advantages, it was adopted by most of the BDO facilities launched in mainland China in 2009. In recent years, with Chinas restriction on acetylene production, abolition of preferential electricity price policies, progress in natural gas exploitation, and coupled with acetylene BDOs weakness in performance, the maleic anhydride method and natural gas Reppe method are increasingly adopted by new BDO facilities built in China.

This report not only analyzes the status quo, supply & demand, competition pattern, price tendency, development of BDO industry as well as the development trends of downstream industries concerned, but also introduces in detail the current development, operation and prospect of key BDO manufacturers across China and beyond.

Key Topics Covered:

1. Introduction

2. Industry Development Worldwide

3. Industry Development in China

4. Development of BDO Downstream Industries in China and Worldwide

5. Major BDO Manufacturers Worldwide

6. Key BDO Manufacturers in Mainland China

7. Key BDO Manufacturers in Taiwan

Companies Mentioned:

· Basf

· LYONDELL

· ISP

· DuPont

· International Diol Company

· Shanxi Sanwei

· Xinjiang Markor

· Nanjing Bluestar

· Shandong Zhongya Chemical

· Fujian Meizhouwan Chlor-Alkali Chemical

· Dairen Chemical Corporation

· Nan Ya Plastics Corporation

· TCC Chemical Corporation

Dairen Chemical Corporation Receives Patent for Modified Polyester Fiber and Process for Producing the Same

Indian Patent News

13 May 2011

[What follows is the full text of the article.]

New Delhi, May 13 -- Dairen Chemical Corporation received patent for modified polyester fiber and process for producing the same on Aug. 31, 2007. The patent number issued by the Indian Patent Office is 208524.

Dairen Chemical Corporation had filed patent application number 816/MUM/2003 for modified polyester fiber and process for producing the same on Aug. 18, 2003. The inventors of the patent are Shien Chang Chen, June-Yen Chou, Husing-Yun Wang and Nan-Min Chen.

According to the Controller General of Patents, Designs & Trade Marks, "Disclosed are a modified polyester fiber and a process for producing the same. The modified polyester fiber comprises the component of alkoxylated 2-methyl-1,3-propanediol and has the properties of easy dyeability at low temperatures and good colorfastness to laundering. The modified polyester fiber can be produced by undergoing a polymerization reaction of alkoxylated 2-metyl-1,3-propanediol, alkanediol, and terephalic acid or an alkyl ester thereof, and then spinning. The modified polyester fiber can be dyed at low temperature and has excellent dyeability and colorfastness to laundering. Therefore, this modified polyester fiber can be used in the application of synthetic fiber product."

About the Company

Dairen Chemical Corporation manufactures and supplies vinyl acetate monomer to manufacture polyvinyl alcohol, polyvinyl acetate, EVOH, EVA emulsion, and resin. The company provides allyl alcohol, vinyl acetate-ethylene emulsion, vinyl acetate-ethylene redispersible powder, ethyl acetate, liquefied carbon dioxide, nitrogen, n-propanol, iso-butanol, tetrahydrofuran, polytetramethylene-ether-glycol, ethylene-vinyl acetate-vinyl chloride emulsion, ethylene-vinyl chloride emulsion, pyridine, and high efficient catalyst for vinyl acetate monomer production. It also offers 1,4 butanediol; 2-methyl-1,3-propanediol; and alkoxylated 2-methyl-1,3-propanediol. Dairen Chemical Corporation was founded in 1979 and is based in Taipei, Taiwan with factories in Taiwan; a factory in Johor, Malaysia; and the other factories in Yizheng, Jiangsu, China.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.13
UK Pound	1	Rs.74.18
Euro	1	Rs.64.88

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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