Taizhou Petrochemical Co., Ltd. and Meilan Chemical Group Co., Ltd., which are located in the same city in Taizhou City, Jiangsu Province, recently signed a letter of intent for cooperation in methanol shipment and product mutual cooperation. This is the first time that Taizhou Petrochemical and Meilan Group have signed long-term strategic cooperation documents. Both parties will give full play to regional advantages, rationally allocate resources, and achieve win-win cooperation. In the letter of intent for cooperation between Taizhou Petrochemical and Meilan Group, the two parties identified two cooperation projects. First, Taizhou Petrochemical took advantage of its own railway line to transport methanol, raw materials and pipelines for the Meilan Group; The Lan Group provided excess hydrogen for fuel to Taizhou Petrochemicals for product upgrading, and Taizhou Petrochemical provided Meilan Group with fuel oil (gas). The two companies, one is a Sinopec petrochemical company, and the other is a local chemical company based on the production of chlor-alkali raw materials. As an important and most competitive domestic production base for methyl ethyl ketone and heavy traffic asphalt, Taizhou Petrochemical is currently playing its own characteristics and striving for greater development. Meilan Group has more than 40 product varieties including chlor-alkali, hydrogenated, fluorine chemical, silicon chemical, and thermoelectric. At present, the far-reaching global financial turmoil and economic recession have put the two companies through trials. At the same time, they also realized that the crisis has also brought opportunities for implementing enterprise resource integration and promoting optimization and upgrading. Therefore, the two companies decided to integrate resources, hold group operations, and seek common development. Since the Taizhou Petrochemical Railway Line was completed and put into operation in 2005, it has not been able to fully realize its storage and transportation capabilities. Some equipment is idle and a large amount of resources are wasted. The storage and transportation of methanol, the main production raw material of the Meilan Group, has always been a problem that has plagued them. From the point of revitalizing stock assets and finding new economic growth points, the two sides agreed to use Taizhou Petrochemical's special railway resources to transport, store, and transport methanol to the Meilan Group. As a rough estimate, Taizhou Petrochemical has a profit of 2 million yuan per year, and the Meilan Group can also save 2 million yuan.
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