TEC was Awarded the Contract for Capacity Expansion Project and Energy Saving of the Fertilizer Plant in China using New Urea TechnologyMar. 13, 2002

Toyo Engineering Corporation (TEC, President Toshihiko Hirose) has signed a contract for a project to expand the capacity and to save energy of a fertilizer plant in China with Sichuan Chemical Works (Group) Ltd. (Chengdu, Sichuan province). The capacity of this urea plant, built by TEC in 1976, will be increased from 1,620t/d to 2,460 t/d. TEC's scope of work extends from licensing the process technology to basic design, critical equipment supply, and technical services. This contract is worth about 14 million US dollars, and it is scheduled to be completed by August 2003.

The "ACES 21" (Improved ACES) technology is selected for this project. This technology is advantageous in low investment cost and low energy consumption for urea production. This is the first project to apply the ACES21 technology at a full-scale commercial plant. A major feature of this technology is that it reduces the number of equipment in the urea synthesis section to simplify the system, which lessens construction costs with the installation of the reactor on the ground in CO2 stripping process. In addition, the operation conditions of synthesis section have been optimized under the lower operation pressure than the previous process. As a result, a remarkable reduction in energy consumption has been achieved.

TEC is one of the world's leaders in the construction of urea plants, and the plants built by TEC account for about 25% of the urea production capacity worldwide. There is demand for an increase in food production, mainly in the developing countries where populations are expanding, and the demand for urea, as a major fertilizer source. This upsurge in demand is seen as increasing by 2 to 3% per year. In terms of a urea plant producing 1,750 t/d, it is expected for four new urea plant projects every year.

While TEC is a world leading engineering contractor of urea production plants, TEC is also a licensor of urea technology, and has formed alliances with local companies in Indonesia, China, India and Germany. In fact, TEC is in the process of expediting the formation of a worldwide network for urea technologies including "ACES 21", "Urea Granulation Process", and "Pollution Prevention Process", and TEC is elaborating to ensure efficient provision of a broad spectrum of urea related services extending from design to construction, and operational supervision. In the case of "ACES 21", TEC has built a test plant in Indonesia on the site of PT Pupuk Sriwidjaja (PUSRI), and performed joint development work with this company.

TEC is committed to seeking orders for the construction of fertilizer plant and/or related renovation works utilizing the most advanced technologies to meet the needs in countries such as China, India, Indonesia, and Bangladesh.

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