Chizhou, Anhui – Additives maker Hengguangda plans to build a new plant with 18kT/year PU additives and 10kT/year PU systems capacity at its existing site in Chizhou.
The plant will cover 56,000m2 and the project will cost CNY300m ($42m), according to an environmental impact report released in April. Construction is expected to take 18 months.
The plant is being designed with capacity for:
- 3 kT/year amine additives;
- 10 kT/year silicone additives;
- 5 kT/year tin additives; and
- 10 kT/year PU systems.
The plant will create 100 new jobs when in operation. It is expected to generate CNY92m annual profits after tax, said the report.
Originally the project also included capacity to make high-speed train and airplane seating. It was expected to have capacity for 100,000 unit/year, but this was cancelled because of market conditions and restraints in at the site, the report said.
Hengguangda has been supercharging its expansion over the past few years, with 40kT/year capacity for additives. It has recently added capacity for POP and modified MDI. It had CNY500m sales in 2018, up 50% from 2017.
Today, the company claims a 63% China market share for its tin additives, a 23% share for silicones, a 20% share for amines and a 10% share for PU systems.