YCI Announces Final Agreement for Investment by Koch Methanol

Recently Yuhuang Chemical Industries Inc. (YCI), a wholly owned subsidiary of Shandong Yuhuang Chemical Co., Ltd., announced it has entered into a definitive investment agreement with Koch Methanol Investments, LLC (Koch Methanol), whereby Koch Methanol has acquired an indirect minority equity interest in YCI Methanol One, LLC (YCI Methanol). YCI Methanol is currently constructing a$1.85 billion methanol production facility in St. James Parish, LA.

As part of its investment, affiliates of Koch Methanol will receive the exclusive methanol offtake rights from the new facility, as well as construct, own, and operate the methanol terminal assets for the outbound flow of methanol via marine, rail, and truck logistics. YCI Methanol’s facility will be capable of producing approximately 1.7 million metric tons of methanol per year.

Supported by the syndication loan arranged and led by Bank of China, construction on the new facility began in January 2017, and commercial production of methanol is expected to begin in mid-2020.