China Fire Signs US$1.5 mln contract for coal-to-olefins project

China's leading industrial fire protection product and solution provider China Fire & Security Group Inc. is to provide safety products for the coal-to-olefins project carried out by Shenhua Baotou Charcoal Chemical. China Fire has won a contract with Shenhua Baotou Charcoal Chemical Industry Co. Ltd valued at approximately US$1.5 mln. China Fire will provide various fire detection products including the Company's patented linear heat detector, third-party safety and surveillance products, and technical and engineering support. The project is expected to be completed in 2010. The coal-to-olefin project is part of the plan to use "clean coal" technologies that convert coal to methanol and will produce ethylene and propylene, will be capable of producing a full range of linear low and high-density polyethylenes. Shenhua Baotou Charcoal Chemical, located in Baotou, Inner Mongolia, is a subsidiary of Shenhua Group Corp. Ltd. By 2010, Shenhua's expected coal production, installed capacity of power plants, transportation capacity, port handling capacity, coal liquids and chemicals production are expected to reach 300 mln tons, 30,000 MW, 200 mln tons, 140 mln tons and 4 mln tons, respectively. China has rich coal and coal reserves that exceed 1 trillion tons.
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