Shanxi Lu'An Coal Chemical Co, a subsidiary of Lu'An Group, was founded on Feb 28, marking the launch of a high-end coal chemical industrial integration platform in Shanxi.

The platform company will develop a production base of megaton fine chemicals and lube-based oil to turn traditional basic fuel and raw chemical materials into high-end fuel and fine chemicals, as well as transform the coal chemical industry in the province.

The production base is expected to reach a production capacity of 800,000-ton cobalt-based Fischer and 400,000-ton synthetic lube base oil within three years, aiming to be the largest domestic high-end lube production base.

Also, the company plans to select firms with conditions and needs for structural reform as partners to develop the production base.

The chemical business will account for a larger part of Shanxi’s economy by the end of 2025, according to Shanxi Lu'An Coal Chemical Co.