In accordance with the national and Yunnan provincial construction plans, the first-phase project of a national-level phosphorus and compound fertilizer base demonstration project under construction by Yunnan Yunrui Chemical Co., Ltd., a subsidiary of the Yuntianhua Group, was completed and put into production. On May 18th, Yuntianhua Group held a grand celebration ceremony.
Yunnan Furui Chemical Co., Ltd. is one of the main entities for the construction of Yunnan National Phosphate Compound Fertilizer Base. The company was established on November 11, 2002, and controlled by Yuntianhua Group Co., Ltd., and Yunnan Development Investment Co., Ltd. holds shares. The construction of the demonstration project undertaken by the project is divided into two phases. The first phase of the project, which will be completed and put into operation, will include an annual production capacity of 800,000 tons of sulfuric acid plant, 300,000 tons of phosphoric acid plant, 600,000 tons of diammonium phosphate plant and related supporting facilities. The total estimated investment is 1.089 billion yuan. According to reports, after the second phase of the project is completed and put into production in 2007, it will form an integrated production capacity of 2 million tons of high-concentration phosphate and compound fertilizer per year.

Wu Xiyan, Chairman of the China Phosphate Fertilizer Industry Association and Honorary Chairman of the China Sulfuric Acid Industry Association, said that the project has adopted advanced and mature technological routes and technical solutions at present in the country. The main production facilities have achieved large-scale and localization, and the overall equipment level is Domestic first-class, close to and reach the international advanced level. This national-level demonstration project for phosphate-based compound fertilizer bases was completed and put into production. It has made significant contributions to the development of China's phosphate fertilizer and sulfuric acid industry, and Yuntianhua has therefore set a clear banner in the fertilizer industry in China.

Li Xinhua, vice governor of Yunnan Province, spoke highly of this project at the ceremony. He said that the completion and operation of the first phase of the project will be of great significance for the scientific and rational development of the phosphate rock resources in Yunnan, the rapid establishment of Yunnan as the country's largest high-concentration phosphorus compound fertilizer base, and even the acceleration of economic development in the province. Li Xinhua requested Yuntianhua to speed up the progress of the construction of an annual output of 500,000 tons of synthetic ammonia, start the second phase of the project as soon as possible, and ensure that the construction of the national-level phosphate compound fertilizer base is completed in the first half of 2007.

Gu Zongqin, Director of the Institute of Petroleum and Chemical Industry Planning, Lin Le, Honorary Chairman of the China Phosphate Fertilizer Industry Association, and Qian Yinghao, President of Yunnan Chemical Industry Association attended the ceremony.

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