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Urea is the most commonly used nitrogen fertilizer. In addition to being used as fertilizers, urea products also have industrial applications, such as used as raw materials for urea-formaldehyde resins and melamine production and feed for hydrolysis to form ammonia. It also serves as an ingredient in complex fertilizers and fertilizer blends, etc. Urea products are divided into granular urea and traditional prill urea according to their different physical and processing properties.

The granular urea is mainly produced in Fudao. The designed annual production capacity of Fudao Phase I is 520,000 tonnes and the designed annual production
capacity of Fudao Phase II is 800,000 tonnes. We utilize our anti-agglomerate chemical technology for our production at Fudao Phase I and Fudao Phase II to improve the durability of our granular urea products so that they are less likely to crumble and to prevent clumping of the granules. Our granular urea products dissolve at slower rates than traditional urea prills and thus offer more cost-effective application. We believe that we are able to charge a premium for our granular urea over traditional prill products due to the following properties:
A reduced injurious biuret level and moisture concentration;
An increased endurance towards crushing and impact and decreased dust content and possibility of caking;

A decrease in urea loss attributable to the large granularity and slow-release property, thus substantially reducing the nitrogen loss due to the nitration effect and significantly increasing the nitrogen absorption.

Our granular urea products, carrying the 'Fudao' brand, are sold in Hainan Province and many other regions in China. They have received awards from various PRC Government agencies and trade associations in recognition of their quality, including being named 'Hainan’s Premium and New Product' by the Hainan Provincial Government in 1997, 'National Key New Products' by the Ministry of Science and Technology in 1998, 'Recommended Product' by China Agriculture Association in 1999, 'Certificate For Exemption From Product Quality Examination' by the National Quality and Technology Supervision Bureau in 2001, 'Hainan’s Well- Known Product' and 'Hainan’s Award For Quality Control' by the Hainan Provincial Government in 2002 and 2003, respectively. 'Fudao' products are also exported to Japan, South East Asia, Australia, Korea and the U.S.. testifying to their competitiveness in the international market.

It is mainly produced by our Tianye production facilities using traditional granulation method at up to 520,000 tonnes a year. The prill urea products are widely used as crop fertilizers, and are particularly suitable for crops with shorter harvest cycles.Our 'Tianye' prill urea products enjoy brand prominence in Inner Mongolia, North and East-northern China. In 2005, Tianye Chemical started using natural gas as production fuel to replace petroleum, which significantly enhanced its production efficiency, and allowed it to strengthen product quality and increaing the competitiveness of urea products.
 
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