News and Research on New Oriental Energy & Chemical Corp (NOEC)
Business Description
New Oriental Energy & Chemical Corp., through its subsidiary, engages in the manufacture and distribution of fertilizer and chemical products. The company’s products are distributed to markets in the Peoples’ Republic of China (PRC).
The company’s primary business is the manufacture and sale of urea, a chemical used as fertilizer for crops and in certain manufacturing processes, including the manufacture of resin, plastic and medicine. The company also produces and sells methanol. The company’s other products include Ammonium Hydrogen Carbonate. In addition, another product the company has developed is Dimethyl Ether (DME).
The company’s products are manufactured in its factory in Xicheng Industrial Zone, Luoshan, Henan Province in the PRC. The company owns and operates a thermal power station with the capacity to generate 3000 kilowatt of thermal power per hour at its factory in Henan. The company focuses on the development of bio-diesel fuels similar to DME and new products that would be marketed to the PRC’s domestic agricultural industry.
Subsidiaries
The company’s major subsidiaries include - Kinfair Holding Limited. (KHL), an inactive holding company, 100% owned by it; Henan Jinding Chemicals Co., Ltd. (Jinding), 100% subsidiary of KHL; and Henan Luoshan Jinding LPG Co., Ltd., (Luoshan), 100% subsidiary of Jinding. The company operates its business through KHL’s wholly owned subsidiary, Jinding.
Products and Applications
The company manufactures urea and coal-based chemicals including Ammonium Bicarbonate, Liquid Ammonia, Methanol and DME. Ammonium Bicarbonate and Liquid Ammonia are mainly used for nitrogenous fertilizers and raw materials of chemical products. Methanol and DME are chemical materials and clean alternatives to fossil fuel. They are used in the chemical industry, pharmaceutical industry, light industry and textile industry.
Urea: Urea is a nitrogen-containing chemical product. It is produced chemically from synthetic ammonia and carbon dioxide. Urea would be produced in a range of forms, such as pills, granules, flakes, pellets, crystals and solutions. The company produces urea in the form of granules. Urea’s principal commercial applications include use as - a component of fertilizer, providing a cheap source of fixed nitrogen to promote crop growth; a raw material for the manufactures of plastics specifically, urea-formaldehyde resin; a raw material for the manufacture of various glues (urea-formaldehyde or urea-melamine-formaldehyde (the latter being waterproof and used for marine plywood); and a component of animal feed, providing a cheap source of fixed nitrogen.
Methanol: Methanol is a clear, colorless, combustible, toxic liquid. Methanol is mainly used for the production of medicine, pesticide, dye, plastic, synthetic protein, fiber, formaldehyde, methyl ether. It would also be used as a component of a type of new fuel, improving the performance of gasoline or diesel oil when combined and used in engines that have been built or modified for this fuel.
Ammonium hydrogen carbonate: Ammonium hydrogen carbonate is a nitrogenous fertilizer. Ammonium acid carbonate is mainly used for agricultural purposes and is suitable for various crops and all types of soil. The purified product would be used in the food industry, and in such industries as pharmaceutical, galvanization and rubber overshoes.
In the food industry, ammonium acid carbonate is used as a leavening agent in breads, cookies, waffles and cake and also as a substitute for yeast in baking. During baking, ammonium acid carbonate decomposes into gaseous products without affecting the flavor.
In the chemical industry, ammonium acid carbonate acts as an auxiliary in the production of catalysts. The product is also a neutralizing and buffering agent for organic and inorganic acids. Ammonium acid carbonate is additionally used to reduce formaldehyde emissions from wood particle boards. Furthermore, ammonium acid carbonate would also and has been used as an additive in cleaners and polishes.
Dimethyl Ether (DME): DME is a type of clean fuel. DME is a colorless gas with a slight ether flavor. In addition to being adopted in the fine chemical industry, pharmaceutical industry and pesticide industry, DME would substitute for Freon as an aerosol propellant and a refrigerant. DME also would be substituted for LPG as a non-industrial fuel, and a bio-diesel fuel for automotive vehicles (modified to accept bio-diesel). With a combustion property, DME has heating efficiency producing safe and clean exhaust. As an aerosol product, DME has been adopted in the production of pesticides, cosmetics, and everyday chemical products (e.g. detergent, hair gel). DME is the chemical feedstock for the production of acetic acid, acetate and hydrocyanic acid.
Partnership
The company’s product research and development partners are - Southwest Chemical Institute; Sichuan Tianyi Science & Technology Co., Ltd.; Tsinghua University; Hunan Chemical and Pharmaceutical Design Institute; and Institute of Oil Crop, Chinese Academy of Agricultural Sciences.
Suppliers
The company has entered into written contracts with several suppliers and vendors, which include - Luoshan Bureau of Electricity Power Management (supplier of electricity); Zhezhou Kaichuang Trading Center (supplier of coal); and Shanxi Jing Cheng Coal Transport and Sales Department (supplier of coal).
Competition
Urea: The company’s main competitors are Henan Zhongyuan Dahua Group; Junma Group; Xinlianxin Corp.; Shandong Luxi Group; Anhui Linquan Group; and Woyang Chemical Corp.
Methanol: The company’s main competitors are the Junma Group and the Lantian Group.
DME: The company’s main domestic competitors are the Sandong Juitai Company and the Xichuan Lutianhua Chemical Company.
Ammonium Hydrogen Carbonate: The company’s main competitors are the Shiji Jinyuan Group and the Lantian Group.
History
New Oriental Energy & Chemical Corp. was incorporated in 2003.
