Wison Engineering’s Proprietary MTO Separation Technology Reaches Advanced International Standards and Is Highly Competitive, According to Scientific and Technological Achievement Appraisal

SHANG HAI, 24 June 2015 – Wison Engineering Services Co. Ltd. (the “Company”, SEHK stock code: 2236; together with its subsidiaries known as the “Group”), one of the largest private sector chemical engineering, procurement and construction management (“EPC”) service providers in China, announced that the development and industrial applications of methanol-to-olefins (“MTO”) separation technology undertaken by its indirect non-wholly owned subsidiary, Wison Engineering Ltd. (“Wison Engineering”), has recently passed scientific and technological appraisal conducted by the China Petroleum and Chemical Industry Association (“CPCIA”). The appraisal results show that Wison Engineering’s proprietary MTO separation technology has reached advanced international standards and is highly competitive in the market.

The experts concluded that Wison Engineering’s MTO separation technology is innovative and advanced in comparison to similar technologies both in China and overseas as it is the first to apply pre-cutting and oil absorption technology to the separation of MTO reaction byproducts, meanwhile it also adopts downward film heat exchanger for transferring heat and materials simutaneously during the oil absorption process. It can be widely used in MTO plants and has good potential for other applications.

According to the CPCIA expert, "MTO technology involves a reaction and separation process. Wison Engineering’s self-developed MTO separation technology plays an important role in enhancing the whole process of MTO. Moreover, it helps break the technological monopoly enjoyed by foreign enterprises in this area, thereby reducing the dependence on foreign technology and promoting the development of domestic MTO industry, and is therefore of great significance in driving China’s economic development."

Mr. Fan Liming, General Manager and Professor-level Engineer at Shaanxi Pucheng Clean Energy Co., Ltd., said, "Wison Engineering’s MTO separation technology features a number of advantages: a simple process, low investment costs in terms of equipment, low energy consumption and higher yields of ethylene. These advantages are clearly manifested at the 680 kta DMTO-II project of Pucheng Clean Energy employing this technology.”

The appraisal shows that when compared to imported technologies currently in use, Wison Engineering’s MTO separation technology increases the ethylene yield by 1%. For a 600 kta MTO unit, this translates into over RMB30.0 million revenue per year due to the increasd yield of 3 kta ethylene. In addition, it saves electricity 330000 kwh, steam 40kta and circulating cooling water 5700kta, the total consumption cost of auxiliary facilities could decrease RMB8.3 million. In total, it can increase a revenue of RMB38.3 million for the project owner per year.

Mr. Li Yansheng, Chief Scientist of Wison Engineering, said:” As the petroleum reserves decline, Wison Engineering has been focusing on developing new processes to produce chemical raw materials with coal as a substitute feedstock for oil. The success of the MTO separation technology greatly encourages us and provides us reference and experience for further new technology development and their relevant industrial application in the future.”

Ms. Chen Huimei, Senior Vice President of Wison Engineering, commented, "Technological innovation is one of the core competencies of Wison Engineering. We leverage our strength in technological innovation to drive business growth and began to develop coal chemical technologies as early as in 2004. We greatly appreciate the accreditation and recognition of our MTO separation technology by the experts. We will give full play to our overall advantages in engineering design and project management and be active in promoting the new technology commercialization and contributing to drive the development of an environmentally-friendly new coal-chemical industry in China."

Wison Engineering’s MTO separation technology, one of its core technologies, was recommended by the China National Petroleum & Chemical Planning Institute for the Coal-to-Olefins Technological Upgrade Demonstration Project in the Twelfth Five-Year Plan period. With low capital investment requirements and featuring low energy consumption and high product yields, this technology has been or will be applied at eight coal-to-olefins plants of different sizes in China. Two of them have commenced production and produce polymer-grade ethylene and propylene, with low energy consumption levels and product yields that exceed the design specifications. Meanwhile, the first 300 kta MTO plant utilizing the technology was launched for production in Wison (Nanjing) Clean Energy nearly two years ago. It is running smoothly, with a product yield exceeding 99.7% and energy consumption per unit of product separated of only 592 kcal. This plant adopted UOP reaction technology and OCP technology along with Wison Engineering MTO separation technology, the perfect performance of the plant showcases the close cooperation of Wison (Nanjing) Clean Energy, UOP and Wison Engineering.