Wenzhou, Zhejiang – Chemical conglomerate Huafon Group plans to build a new plant in Wenzhou, Zhejiang with 500kT/year capacity.
Huafon said capacity would break down like this:
150kT/year capacity for PU intermediates; 300kT/year capacity for PU leather resin; and, 50kT/year capacity for waterborne PU resin.
According to a local government website, the project received regulatory approval in December. It will be built by the group’s subsidiary Wenzhou Huafon Synthetic Resin.
Located in Rui’an county with more than 214,000 m² total area, the new plant has CNY 971m ($154m) investment earmarked. It is expected to come on stream in August 2018.
The project will create 650 new jobs when in operation and generate CNY 596m annual profit, said its environmental filing.
China’s consumption of PU products has been growing by 8% annually and is predicted to reach 13,000kT in 2018, said the environmental filing.
China’s PU leather resin sector reported CNY 15bn sales in 2016. It will experience rapid growth over the next decades, driven especially by the country's booming automotive industry, the filing added.
Huafon also plans to build a second phase at the site, with additional 140,000 m² area.
Plans for that phase show facilities with:
150kT/year capacity for PU intermediates; 300kT/year capacity for solvent-free resin; and,50kT/year capacity for waterborne PU resin.
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