Taizhou, Jiangsu – Chinese system house Hongbaoli announced on September 3 it is to raise up to CNY509m ($74m) through a private share placement.
All of the funds will be pumped into a new project with 120kT/year capacity for polyether polyol at the company’s site in Taixing, which is located in the county of Taizhou, Jiangsu province, it said.
Currently, Hongbaoli has 150kT/year polyether polyol capacity and last year sold 120kT. Growing downstream markets, especially along the cold chain, will further boost the demand, said the announcement.
China’s cold chain sector still has great potential. Refrigerated vehicles in the country account for only 0.3% of total freight lorries, while the share stands at up to 1% in the US and 3% in Germany.
The polyether polyol facility will take two years to complete and is expected to generate CNY1.3bn annual sales when in full operation.
The Taixing site already houses 120kT/year facilities for feedstock propylene oxide, the capacity of which may also be raised in the future when the new project is on stream, said Hongbaoli.
Currency exchange: XE.com
