Chapter 3625

This day, Su Xinghui, along with Xing Guodong, Hou Wenhai, Hou Wenchang, and Gu Sheng, came again to the south bank of the Dadian River, which was the original Linshan Coal Chemical Plant, to inspect the preparations for the Linshan Coal Chemical Group.

The first phase of investment for the Linshan Coal Chemical Group was basically in place. Among them, several major state-owned commercial banks in Linshan jointly provided a first-phase loan of 300 million yuan to the Linshan Municipal Government for their plant renovation project.

If it were any other mayor, it would be impossible to get a loan of 1 billion yuan from the bank when just taking office. However, Su Xinghui had Gao Zhiyong's connection, so it was relatively easy to get this loan.

Gao Zhiyong had worked at the People's Bank of Yanzhong Province and several state-owned commercial banks, and now he was also serving as the head of the Yanzhong Provincial State-owned Assets Management Group, so he had good connections in the financial circles of Yanzhong Province. Several executives of state-owned commercial banks in Yanzhong Province were his former colleagues.

In addition, Su Xinghui had a good political record in Baozhou, which all state-owned commercial banks were very aware of. Su Xinghui was synonymous with economic development. As long as Su Xinghui was in Linshan, there couldn't be any problem with Linshan's repayment ability.

Moreover, the Hou's Group and Hanhai Group also joined hands to invest here, each investing 1 billion yuan, which also proved that they had deep confidence in this project. Otherwise, who would take real money and throw it into the water here? So this also gave several state-owned commercial banks great confidence. They jointly lent 1 billion yuan to the Linshan Municipal Government, and the first-phase loan was 300 million yuan.

This money, plus the 600 million yuan of investment funds from the Hou brothers that were in place for the first phase, added up to 900 million yuan, which would be used as the start-up capital for the Linshan Coal Chemical Group. With this start-up capital, the Linshan Coal Chemical Group had now begun preparations and renovation work.

Although the Linshan Coal Chemical Group was located on the south bank of the Dadian River, it wasn't too far from the urban area. Su Xinghui planned to build an economic development zone around the Linshan Coal Chemical Group.

The Linshan Coal Chemical Group now had quite a lot of debt, but their assets were also quite considerable, especially this nearly 1,000 acres of land, which was a huge asset. So, speaking of it, the Linshan Municipal Government using the original Linshan Coal Chemical Plant plus a 1 billion yuan loan to hold 50% of the shares wasn't entirely taking advantage of the Hou brothers.

With this piece of ready-made land, the new Linshan Coal Chemical Group didn't need to go to requisition land, saving very cumbersome links. Moreover, those factory buildings of the Linshan Coal Chemical Plant had been built for about fifteen years, not too old, and the construction quality at that time was quite solid. Now these factory buildings could continue to be used.

Even those mechanical devices could continue to be used after technical transformation. Therefore, the Linshan Coal Chemical Group would undergo about a few months of technical transformation, and the first phase of the project could be put into production next year, while the second and third phases of the project could continue to be built, eventually becoming a large coal chemical enterprise with an annual coal processing volume of tens of millions of tons.

Su Xinghui, in the carbonization workshop of the original Linshan Coal Chemical Plant, listened to Gu Sheng's explanation and roughly understood the general process of coal chemicals. Carbonization was one of the main processes of coal chemicals. Carbonization was the reaction process of heating and decomposing solids or organic matter under the condition of isolating air. The result of carbonization was the generation of various gases, vapors, and solid residues. The mixture of gas and vapor was cooled and then separated into gas and liquid.

Coke was one of the main products of carbonization. The main product of the original Linshan Coal Chemical Plant was also coke. Coke was an important industrial raw material, mainly used for steelmaking. When China's steelmaking industry was booming, the price of coke was also getting higher and higher.