China's Hengli, the country's largest polyester yarn producer, said it was initiating a $20 billion project to convert coal to polyester yarn, used in clothes, packaging and plastic bottles.
The project is aimed to be put into operation by the end of 2025 in Yulin city, Shaanxi province.
Hengli will finance 30% of the Yulin investment from its own funds and the rest from Chinese banks.
Hengli's plans involve converting 20 million tonnes of coal into 9 million tonnes of fine chemicals and polyester a year and the company has tapped China Tianchen Engineering Corp and Sinopec's Luoyang Engineering to conduct pre-feasibility studies.
Coal is not a typical raw material for polyester and Hengli's plan will be the world's first of its kind.
Established in 1994 and as one the world's largest polyester yam producers, Hengli well feeds demand in China as the world's biggest textile consumer.
Hengli had annual revenues of $80 billion last year.
(Writing by Jessie Jia Editing by Alex Guo)
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