Fuzhou, Fujian – Fujian Connell Polyurethane obtained regulatory approval in October for a new MDI plant.
The project was first announced in 2016, two years after the group fully acquired Sweden’s Chematur with proprietary MDI technologies.
The plant will cover an area of 566,000 m2 in Fuzhou’s coastal chemical complex, said Connell. The company added that the project will cost CNY 6.6bn ($947m) and it will be built in two phases.
Phase one with 400kT/year MDI capacity and feedstock capacities such as 55kT/year formaldehyde will cost CNY 5bn. It is panned to come on stream in October 2019.
The year 2020 should see building start on the second phase. This will have 360kT/year aniline capacity. Production is scheduled to start in 2021. Raw materials such as caustic soda will be supplied from a nearby TDI plant owned by FJ Pec.
The project will create 514 jobs and generate CNY 2bn average annual net profit on CNY 7.3bn revenue when in full operation, said the latest environment impact report.
Fujian Connell is now 55% owned by Connell Chemical Industry, 25% owned by state-owned FJ Pec Group and 20% owned by Fuzhou State Asset Investment & Development Group.
Meanwhile, FJ Pec affiliate Fujian Southeast Electrochemistry, a Chinese isocyanate maker, has signed letter of intent to supply to Connell’s new plant.
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