Zhuhai, China - Isocyanates producer Yantai Wanhua is to invest RMB 2 billion ($323 million) in a production base in south China, for materials such as modified MDI (methylene diphenyl diisocyanate).
The new company, which is registered as Guangdong Wanhua Chemical Technology Co. Ltd, is located in the Gaolan Port Economic Area in Zhuhai, Guangdong. Construction of the site, which will cover 340,000 m², will be divided into two phases. Yantai Wanhua said 700 million yuan will be pumped into phase 1, which includes modified MDI and TPU (thermoplastic polyurethane) with a capacity of 50,000 tonnes per year and 20,000 tonnes per year respectively. The work is expected to begin in July 2013 and to be completed in June 2015.
In the second phase, due for completion in 2017-18, the main plants' capacity will be doubled and a polyether polyol plant of 50,000 tonnes per year will also be built. The Chinese company will also complete the development of the logistics and technical centre.
Yantai Wanhua said the establishment of the new company plays a pivotal role in its domestic layout. It will serve "rapidly growing" downstream fields such as automotive, coatings, leather, footwear, appliances and furniture in south China and south-east Asia.