On Feb. 5,2006, Chengda and Sichuan Dazhou Steel Group Co. Ltd officially signed the contract for engineering design for 200,000TPY methanol plant at the industrial waste gas utilization demonstration base at Dazhou, Sichuan. This project is located at the natural gas chemical industrial park of Dazhou city. It takes full advantage of the abundant resource of natural gas at Dazhou, taking natural gas as the feedstock and using the advanced national LP synthesis technology to produce methanol.

Investment for this project is roughly RMB500,000,000 yuan, with construction period of 18 months. The completion of this project will be a milestone mark of Dazhou Steel Group’s diversified development from steel sector to chemical engineering sector.