Nanjing, Jiangsu – Surfactant maker Jiangsu Maysta Chemical is planning to build a new 6kT/year facility at its existing site in Nanjing Chemical Industry Park, pending regulatory approval.
When complete, the new capacity is scheduled to produce 3kT/year of products for rigid foam, 2kT/year flexible foam and 1kT/year for high-resilience foam, said the company’s filing in August. An additional 200T/year trial facility is also included.
Maysta will pump CNY44m ($6.6m) into the surfactant project, which is expected to generate CNY23m annual net profit on CNY163m sales when in operation, scheduled in July 2018.
Over the first half of 2017, the company sold 5.3kT rigid foam surfactants and 1.2kT flexible foam surfactants bringing in CNY157m revenue, said its half year report.
Although the company's revenue grew by 11%, net profit dropped 20% to CNY30m due to rising feedstock prices – a 52% year on year jump for siloxane (D4) and 10% for polyethers.
China's slowdown in domestic application markets such as home appliance, furniture and automotive also added to the situation, said the report.
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