——What kind of region is Yulin City, Shaanxi Province?

Yulin is a resource-rich area in China

General Manager Chen Guoping:  Yulin City is located in the northern part of Shaanxi Province, neighboring Shanxi Province and Inner Mongolia, where three provinces intersect. Yulin City is so rich in resources that it is called the Kuwait of China, especially abundant in coal and natural gas. It is said to account for 15% of China’s storage capacity for both coal and natural gas. In addition, it is rich in nature and has great potential for solar power and wind power generation. If you look at the direction of development of China’s chemical industry, the coastal area is the center of petrochemicals, but inland is active in coal chemistry, and Yulin City is counted as one of the four major coal chemical industry model districts in China.

Another feature of Yulin City is that it is a gathering point for major companies. Therefore, we are blessed with opportunities for collaboration with major companies. The Shaanxi Coal Group, with which we are collaborating, is a conglomerate that owns not only coal business but also chemical business, steelmaking business, etc.

——What kind of business will HighChem conduct in Yulin City?

Establishment of the Northern Headquarters to maximize the advantages of Yulin

General Manager Chen Guoping: In order to maximize the opportunities and advantages of Yulin City, we established the Northern Headquarters (Gao Hua Chemical (Shaanxi) Management Co., Ltd.) in 2021, which consolidates the functions of HighChem’s northern area. This headquarters can be called a small version of HighChem. It has functions for trade business, technology licensing business, investment business, and research and development. In particular, the license business and investment business make use of the advantages of Yulin City are the core businesses of HighChem. In the project with an annual production of 1.8 million tons, which can be called the culmination of the SEG® license, we not only license but also invest in the business. In addition, we are sequentially materializing various projects such as electrolyte and biodegradable businesses in the adjacent area.

——What kind of development can be expected in Yulin City in the future?

General Manager Chen Guoping:  HighChem is expanding its business with the aim of becoming a trillion yen company, and the goal is to grow this Northern Headquarters to bear one third of the trillion yen. The Northern Headquarters will demonstrate the abundant resources and large scale advantages of the Yulin region and aim for further growth.