Taizhou, Jiangsu – Nanjing Hongbaoli, China’s largest system house in domestic market share, posted a 15% drop in revenue for the first nine months of 2015 to RMB1.4bn ($219m).
System house Hongbaoli sees 15% nine-month revenue drop and breaks ground on new PO plant
The company also broke ground on its 120kT/year PO (propylene oxide) plant in Taizhou, Jiangsu on 27 November. It has RMB950m investment earmarked, including RMB375m to be raised from private placement.
The new plant is located at the Special Economic Zone in Taizhou’s Taixing county, and is the company’s largest project in investment since its foundation in 1987, according to the company’s website. The project is scheduled to start operation in 2017 and its capacity will be able to meet the company’s PO feedstock demand.
China’s PO demand will have a 7% annual growth rate over the next seven years, and the new plant will bring in RMB146m yearly net profit on RMB1.3bn revenue when it’s operating in normal conditions, said a Hongbaoli announcement.
XE Currency Conversion: 4 December, 2015.