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(Hong Kong, 20 May 2024) – China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907.HK), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China, is pleased to announce that Coke Oven No.2 of the 4.8-million-tonne coking chemical project at the Sulawesi Production Base in Indonesia under its subsidiary Risun Wei Shan New Energy (Indonesia) Company Limited (“Risun Wei Shan”) started operation on 18 May 2024. That is the fourth coke oven after the first (3#), the second (1#) and the third (4#) were built at the production base and have been in steady operation meeting requirements and targets since starting operation on 19 July 2023, 6 November 2023 and 8 February 2024, respectively. To date, Risun Wei Shan affords production capacity of 3.2 million tonnes of coke a year.
Established in 2021, the production base, which is on the island of Sulawesi, Indonesia is China Risun’s first overseas production base built responding to China’s Belt and Road initiative, as well as to promote the Group’s business development at home and worldwide. China Risun has replicated and used the nine core strengths and nine competitive advantages formed over the years developing its business, its patents and know-how, and achievements in safety, environmental protection, quality, automation, informatization, digitalization and intellectualization in overseas projects. It endeavors and has built world-leading benchmark production bases employing a uniform construction model – integrated, large-scale, intensive, ecological and intelligent, guiding planning and building of infrastructure, management of operation and energy use, logistics and transportation, safety and environmental protection, plus R&D and innovation.
The latest coke oven in the Sulawesi Production Base is a top-loading coke oven, with a 7.1m tall coking chamber, with a center distance of 1,500mm, average width 500mm and each oven contains 66 holes. Each unit has an annual production capacity of 800,000 tonnes, which is steadily providing high-quality energy and refined chemicals to relevant projects in the production base, capable of meeting the current and future development needs of Indonesia, and selling to Southeast Asia, Europe and other countries and regions, contributing to China Belt and Road initiative. The project can also drive the rapid and healthy development of the coking industry in Indonesia and ASEAN countries, help Indonesia grow international trade and offer directly more than 1,000 jobs to locals.
With the coke ovens completed and in operation one by one, the project boasts comprehensive strength, and smooth production and operation. The first coke oven, which started operation in July 2023, had “sale, transportation, production and supply” processes all linked up, and kicked off supplying gas to external parties all in the same month. It started making profit right after starting operation and in two and half months reached full production capacity, giving subsequent coke ovens a successful model to replicate and improve on. That, plus the production of tar, ammonium sulphate, crude benzene of the chemical production system gradually kicking off, the project has since had two growth engines bracing its profitability, allowing it to build strategic partnerships with renowned enterprises, including Adaro Group, and establishing a stable supply and sales network. It has also obtained export quotas from relevant Indonesian government departments to sell products to end users like steel mills, alloy plants, metal plants, and chemical plants around the world, and has realized export of coking coal from China to Indonesia, making it an important constituent of the global supply chain of the Sulawesi Production Base, allowing the project to enhance cost advantage and comprehensive competitiveness.
Against the backdrop of China’s “Belt and Road” initiative gaining international endorsement and the resulting birth of RCEP in 2020, “venturing overseas” to growth its business is the natural choice for China Risun. Picking Indonesia to build its first overseas foothold was a major decision after careful consideration, agreeing with China Risun’s adapting to the dual-carbon goals and taking its business forward and that choice has since been proven correct. In its strategic plan, the Group has stated its true and long-term aspiration to develop business overseas. It is neither a whim nor a stopgap measure. Moreover, domestic deployment and overseas expansion and development are complementary, coordinated and inseparable, as both are part of China Risun’s long-term goals.
China Risun’s investment in Indonesia involves not only an export of capital, but also its advanced business management philosophy, professional technologies, technological innovation and business philosophy. From investing in business development in Indonesia, the Group has been able to expand its market to RCEP 10+5 countries and is hopeful of extending relevant international trade into the huge China market, thereby better aid the motherland’s economic construction. The Group will make every effort to turn its first overseas project into a world-class one-of-a-kind project that showcases its sincerity, image, brand and strengths. With speed and at high standard, the Group has had another benchmark coking plant establishes in Sulawesi. Furthermore, China Risun has started to look into and plan downstream fine chemical projects, actively deploying for extending, supplementing and strengthening its industrial chain. It has kept growing the circular industry cluster, expanding effective industrial investment, raising industrial carrying capacity, to the end of building its first overseas smart circular economy – modern coal chemical, new energy and new material – industrial base to serve as a bridgehead for it to develop business overseas.