Yantai, Shandong – Local authorities have approved a plan by Wanhua to build ethylene and other facilities at its Yantai site. The board and shareholders still need to formally give their permission.
Wanhua will pump CNY 16.8bn ($2.5bn) into the project, including CNY 11.8bn bank loans, and construction is expected to take two years, said the company’s announcement on September 5.
The facilities are part of Wanhua’s polyurethane integration project and include the following capacity: 1MT/year ethylene/propylene, 400kT/year polyvinyl chloride, 150kT/year ethylene oxide, 450kT/year LLDPE, 300kT/year propylene oxide (650kT/year styrene), and 50kT/year butadiene.
The project will help build an advanced petrochemical cluster in north Shandong province, said the authorities’ approval document.
The company has been ramping up expansion with remarkable financials. It reported CNY 30bn revenue over the first half of 2018, up by 23% year on year. Net profit jumped 43% to CNY 6.9bn.
A stable China market and rising demand from overseas have contributed to such growth, said Wanhua’s half year report.
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