(Yicai Global) Nov. 10 -- Yankuang Group Co., a Chinese state-owned coal firm based in Shandong province, has signed an investment agreement worth USD3.5 billion to expand the syngas production project in Yulin, Shaanxi province with US-based Air Products and Chemicals Inc. [NYSE:APD]

Under the agreement, Yankuang's local subsidiary will set up a joint venture with the American company to build a complete set of syngas production facilities capable of providing 40,000 tons of oxygen a day to support the production of 2.5 million cubic meters of syngas per hour, online news outlet Jiemian News reported today.

The two firms have already begun the first phase of the project which can supply 12,000 tons of oxygen a day. The extension is expected to enter operation in 2021, when the joint venture is set to become one of the largest chemical production bases in China.

The project was one of a series of projects signed by Chinese and American companies yesterday, while US President Donald Trump was amidst a state visit to Beijing. The two nations signed an impressive USD253.5 billion during the first two days of his trip, setting a global record for bilateral trade and investment agreements over the course of two days.