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Sulphuric Acid on the WebTM Technical Manual DKL Engineering, Inc.

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Acid Plant Database July 3, 2012

Owner Migao Corporation

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Location Guangzhou
Guangdong Province
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Website www.migaocorp.com
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Coordinates* -
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Plant Capacity -
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Remarks Migao's second operational facility and the first potassium sulphate production is found in the city of Guangzhou, Guangdong Province. After its first full year of production in calendar 2005, Guangdong Migao, at full capacity, produced 40,000 tonnes of potassium sulphate. A by-product of manufacturing potassium sulphate is hydrochloric acid. Guangdong Migao produces approximately 50,000 tonnes of hydrochloric acid. This product provides a reliable and profitable revenue source as there are numerous applications of hydrochloric acid for local industrial customers.
Migao has 100,000 tonnes of potassium sulphate capacity. This also includes a sulphuric acid production facility. Sulphuric acid is one of the key inputs in the manufacture of potassium sulphate. This strategic development will reduce the input costs as well as being able to reduce energy costs – in the production of sulphuric acid, heat is generated that can be converted into electricity, which will be used to power the Guangdong facility.
An additional 60,000 tonnes of annual potassium sulphate capacity began in October 2008. The expanded production capacity will bring the total annual production of the Guangdong Migao facility to 160,000 tonnes of potassium sulphate.
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General Migao operates fertilizer production plants in various strategic locations in China for the production and sale of specialty potash fertilizer, namely potassium nitrate and potassium sulphate, along with their respective co-products, ammonium chloride and hydrochloric acid, to the domestic, high-value agricultural markets in China. These fertilizers provide China’s economic crop growers opportunities for improving crop quality and increasing crop yield in an environmentally responsible manner.
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July 3, 2012 - Fertilizer producer Migao Corp. (TSE:MGO) swung to a fourth quarter net loss on an impairment charge tied to a sulphuric plant, though sales rose driven by speciality compounds.  Migao, established in 2003, produces specialty potash-based fertilizers for the high-value agricultural Chinese market.  The company is currently producing its two core products – potassium nitrate and potassium sulphate, at four operating sites in China.  The China-based company posted a net loss of $1 million, or two cents per diluted share, compared to $8.8 million, 17 cents per share profit, a year-ago.  Sales, for the quarter ended March 31, climbed to $138.8 million versus the $117.6 million in the same three month period in 2011.  Without the impact of a sulphuric acid plant impairment cost, earnings would have been five cents per diluted share, the company said.  Full-year earnings slipped to $16.53 million, or 31 cents per share, compared to a net income of $33.9 million, or 64 cents per share, a year-previously. Excluding one-time items, Migao would have earned 38 cents per share.  Revenues grew by 27 per cent to $402 million versus the $316.7 million.  "Our strong revenue growth for the year was driven by strong sales from our new specialty compound fertilizers as well as increased sales of potash," Migao chief executive Liu Guocai said in a statement.  Meanwhile, the company's potassium nitrate and specialty compound businesses were healthy during the year with "strong demand and healthy profit margins," Guocai said.  Gross margins, a measure of profitability, narrowed to 14.8 per cent from 22.3 per cent. Margins were hurt by lower selling prices for hydrochloric acid and a global economic downturn.  The company’s board also approved a cash quarterly dividend policy, which is expected to be declared August 2012.

MTPD - Metric Tonne per Day           STPD - Short Ton per Day
MTPA - Metric Tonne per Annum      STPA - Short Ton per Annum
SA - Single Absorption
DA - Double Absorption

* Coordinates can be used to locate plant on Google Earth