Shanghai, China – Xuchuan Chemical expects to start up its phase two project for its plant in Suzhou, Jiangsu in 2018.
Xuchuan makes polyurethane resins, adhesives, elastomers and polyester polyols.
The phase two project has 280kT/year nameplate capacity. Annual production will be between 100-200kT/year, said Zhang Weidong. Zhang is general manager of Xuchuan’s intermediates unit. The project started its trial run this April.
The plant is in Suzhou, the city where the company is headquartered. It already has 150kT/year facilities in operation. Xuchuan also has four other sites in the Yangtze Delta area that are of a similar size. The company claims to be China’s largest maker of polyurethane leather resin.
Last year the company recorded CNY 1.5bn ($219m) revenue with single digit growth from 2016, said Zhang. Growth could have been higher but for the impact of a price war in the Chinese market.
Sales of solvent based products has also been declining, Zhang added, and the China-US trade war is putting considerable pressure on downstream application sectors.