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November 02, 2017 12:00 AM

Huitian of China to add polyurethane adhesives capacity

Jane Ho
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    Xiangyang, Hubei – Huitian New Materials is planning to break ground on a new plant with 20kT/year polyurethane adhesives capacity and 10kT/year automotive materials capacity within the year, the company told UTECH-polyurethane.com.

    Inside an existing Huitian factory

    Most of the PU adhesives, including 10kT/year for flexible packaging and 10kT/year for hot melt reactive products, will be solvent free, said the company’s board secretary Zhang Hongjian. He added that the automotive materials facilities also contain 20T/year PU glass adhesive capacity.

    The new plant is situated in Xiangyang Fine Chemical Park with 87,000 m2 total area, 30 km away from Huitian’s existing site in the city. Originally slated to start construction in October, ‘the project is taking longer to obtain regulatory approval due to China’s tightened environmental policies,’ said Zhang.

    Huitian plans to pump CNY85m ($13m) investment into phase one, which consists of the flexible packaging adhesives – the China market for which has been growing at a 10% rate over the past few years – and 30% of the automotive materials capacity.

    Phase two, comprising the rest of the capacity, has CNY127m investment earmarked. Both phases will take 16 months to complete and time to start phase-two construction will be determined based on market conditions.

    Huitian expects the new plant to bring in an average annual profit of CNY85m on CNY588 average sales when on stream, said the company’s filing.

     

    Currency Conversion: Xe.com

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