Lutianhua invests in 100,000-ton fine chemicals project

Sichuan Lutianhua (SZSE:000912) announced plans to invest 1.17 billion yuan in a 100,000-ton per year green fine chemicals project, aiming to extend its industry chain and improve its market competitiveness. The project, approved by the company's board, will be located in the west of the Luzhou Lutianhua Chemical Industrial Park and will consist of production lines for 50,000 tons of fatty acids, 30,000 tons of fatty primary amines, 10,000 tons of fatty amides, and 13,000 tons of bisamides, along with supporting facilities. Construction is expected to take two years, with 700 million yuan invested in the first year and 400 million yuan in the second. The company will fund 346.99 million yuan from its own capital, and 700 million yuan from loans. The project is expected to generate average annual sales of 993.37 million yuan and a profit of 104.49 million yuan, although the company noted risks associated with market conditions and other factors.