Jan. 4, 2006

Toyo Engineering Corporation (TOYO) has received a contract for the licensing, basic design and supply of catalysts for the world's largest coal-based 210,000 tons/year fuel-use dimethyl ether (DME) manufacturing facility. This plant is to be installed in Ningxia in northwestern China by Ningxia Coal Group Co., Ltd., a Chinese state-run coal company, and is expected to be completed by the end of 2007.

This project is a part of the chemical industrial complex construction projects for coal gasification using the customer's abundant amounts of coal as raw material, and the DME produced will be consumed locally as an alternative energy such as liquefied petroleum gas. In China at present, a large number of coal-based chemical industrial complexes are being proposed that include the production of DME as a clean source of energy from coal, which attracts attention as it meets the present needs of Chinese society for reducing dependency on petrol as well as for preventing pollution.

For TOYO, this is the third DME project awarded following the completion of the world's first fuel-use DME plant with a capacity of 10,000 tons/year, and a second plant with a capacity of 110,000 tons/year that is currently under construction at Luzhou in the Sichuan province. Taking this opportunity, we are endeavoring to expand our business further in this field.

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