Dezhou, Shandong – China’s polyol and fertilizer maker Shandong Hualu-Hengsheng Chemical announced on 30 April it is to start a 500kT/year ethylene glycol (EG) project, pending regulatory approval.
The new plant has CNY 2.7bn ($400m) investment earmarked and will be situated at the company’s existing site at Dezhou Canal Economic Development Zone in Dezhou, Shandong.
The project is scheduled to take 24 months to complete and is expected to bring in CNY 300m annual profit on CNY 1.9bn revenue. “It will raise the company’s profitability and alleviate Chinese companies’ severe reliance on EG imports,” said Hualu-Hengsheng’s statement.
The Shanghai-listed company currently has 50kT/year EG capacity and 200kT/year capacity for other polyols. Last year its revenue dropped by 11% from 2014 to CNY 8.7bn, 14% of which came from polyols.
Net profit in 2015 ramped up by 12.5% to CNY 905m thanks to its “procurement of feedstock at lower prices,” according to the annual report.
The first quarter of 2016 saw a year on year decline in both the company’s revenue and profit.
Exchange Rates: Xe.com 14 July 2016.