Binzhou City, and even the Shandong Province, is in possession of abundant crude benzene material resources. However, due to the lack of producers and old technology, only coking benzene with low added value can be processed. This project plans to take advantages of crude benzene materials in this area and Shandong Province and process crude benzene into petrochemical benzene with the up to date crude benzene hydrogenation technique. This will not only improve the comprehensive utilization of coking byproducts, but also increase the added value of deep-processed refined benzene products to improve the economic benefit. Since it remits the pressure caused by petrol benzene demand, this project also brings social benefit when the petrol has tension in supply.
    There are four coking factories in Binzhou, with annual output of crude benzene as byproducts of 24,000 tons; while there are over 80 coking factories in Shandong Province, with an annual output of crude benzene as byproducts of 300,000 tons. As a result, the company plans to take advantages of abundant local crude benzene resources to establish a suite of refined benzene production facilities, with annual processing capacity of 25,000 tons of crude benzene.
The construction of this project will form a new economic growth point to increase the companys benefit, and also help with the environmental protection by applying to the States requirements on comprehensive utilization of resources and clean production.
    Major products of this facility include pure benzene, methylbenzene, dimethyl benzene, nonaromatics and heavy benzene, the first three of which are most important products.
    Product use: pure benzene is an important basic organic chemical raw materials and solvent, widely used for producing synthetic resin, synthetic fiber, synthetic rubber, dyestuff, medicine and pesticide and serves as important organic solvent.
Methylbenzene and dimethyl benzene are most basic organic chemical raw materials and solvent. Methylbenzene can be used to produce benzoic acid, TDI, benzyl chloride, cresol, etc, and also serve as solvent and gasoline additive; Mixed Xylene is mainly used as solvent and gasoline additive; pure Xylene serves as raw materials of synthetic resin, synthetic fiber, dyestuff, medicine and pesticide.
The hydrogen production from methanol and low temperature hydrogenation benzene refining production technology adopted in this project is an advanced, mature and reliable technology which has been proved by sound running of similar facilities in China.
    The public constructions required by this project can rely on the existing facilities of the company to save the construction investment and shorten the construction period.
    The total investment of the project is RMB57.2million, RMB47.93 of which is construction investment and RMB9.27 of which is liquid capital.
Average annual cost is RMB119.02 million; average annual profit totals RMB20.41 million; whole capital internal rate of return is 29.17% (after tax); the payback period is 4.54 years (after tax); the financial targets exceed the average level of the industry and indicate a favorable economic benefit.