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         As an alternative energy source of dimethyl ether is hot.

　　The reporter was informed that Shandong Jutai Chemical Company has started the construction of another 1 million tonnes DME project in Zhangjiagang, Jiangsu Province.

　　"Our Jiangsu project can reach full production by the end of 2008, and Zhongtian Hechuang's plan is to put it into production in 2010, by which time we will not only have mature sales channels and a stable customer base, but also be no inferior to Zhongtian Hechuang in terms of production capacity." On 22 April, a person in charge of Jutai Chemical's General Manager's Office told reporters.

　　Jutai Chemical is a private enterprise located in Linyi, Shandong Province, founded in 2002, with a registered capital of 390 million yuan. Jutai from January 2003 to start construction of the first phase of 30,000 tonnes of dimethyl ether project, in January 2004 on an annual output of 100,000 tonnes of dimethyl ether project. At present, its leading products are dimethyl ether and methanol, with an annual production capacity of 150,000 tonnes of dimethyl ether and 250,000 tonnes of methanol, which is the largest dimethyl ether producer in the world at present.

　　Ltd. is a company specialised in DME production established under the leadership of the National Development and Reform Commission (NDRC), with a total planned investment of RMB 21 billion and a production capacity of 3 million tonnes, and a total of five investors including China Coal Energy Group and Sinopec.

　　In June 2006, the NDRC held a "Symposium on Promoting the Development of the DME Industry", proposing to strengthen the demonstration of the use of DME as an alternative energy source and urging to step up the formulation of relevant standards, and to explicitly support DME projects with an annual output of more than 1 million tonnes. Soon after, the NDRC named China Coal Energy Group, Sinopec, Shenneng Group, Yintai Investment and Inner Mongolia Manshi Coal Group to engage in a joint-venture demonstration of a large project of dimethyl ether. As a result, there was the establishment of Zhongtian Hechuang, with a registered capital of 6 billion yuan, and the above five companies accounting for 32.5%, 32.5%, 12.5%, 12.5% and 10% of the shares respectively.
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　　 "Our biggest advantage over Zhongtian Hechuang is technology." We have worked our way up from 30,000 tonnes step by step and have exclusive technology, said a top executive of Jutai Chemical. Although the shareholders of Zhongtian Hechuang are one of the best in their respective fields, none of them are experts in coal chemical industry.

　　Due to the outstanding technical advantages, the dimethyl ether produced by Jutai Chemical is one-half of the investment in equipment and more than one-third of the production cost compared with similar products produced by other manufacturers.

　　At the end of last year, jiutai chemical to "China energy" code name, in Singapore stock exchange to achieve IPO, raising funds more than 1 billion yuan. Subsequently, the pace of Jutai Chemical's expansion began to accelerate.

　　April 1 this year, jiutai energy Inner Mongolia Co., Ltd. held 1 million tons of methanol, dimethyl ether project main equipment manufacturing contract signing ceremony. Jutai Chemical Chairman and President Cui Lianguo said, the Inner Mongolia project construction of the various supporting documents are ready, the project started all the preparations for the full-scale preparatory work are all ready, has entered the stage of full implementation. According to the plan, the project has a total investment of 5.6 billion yuan, will be formed in 2010 with an annual output of 1 million tonnes of dimethyl ether and 1.5 million tonnes of methanol.

　　Ten days later, Cui Lianguo appeared in Lianyungang, Jiangsu Province, only 100 kilometres away from Linyi. The first phase of Jutai Zhangjiagang project, with an annual output of 300,000 tonnes of DME, covers an area of 150 acres, with a total investment of 48.72 million US dollars, and is scheduled to be completed and put into operation by the end of 2007; the second phase of the project, designed to have an annual output of 700,000 tonnes of DME, is scheduled to be started at the beginning of 2008, and to be completed and put into operation by the end of 2008. After the completion of the whole project, it will achieve an annual sales income of RMB 5 billion.