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First ABS plant in South China on stream

By: Nina Ying Sun

May 23, 2014

South China, which houses a significant share of China’s plastic manufacturing, has never had local ABS production, until now.

CNOOC & LG Chem Petrochemicals Co. Ltd., a 50/50 joint venture between China’s state-owned CNOOC and Seoul-based LG Chem, has commenced production on its 150,000-ton phase one project in the spring of 2014, the company told Plastics News.

The company is “actively preparing for” the second phase, which has been approved by the provincial government and double the plant’s capacity to 300,000 tons upon completion.

The plant is located in the Daya Bay Petrochemical Industrial District in Huizhou, Guangdong province, neighboring CSPS (a JV between CNOOC and Shell) and the Huizhou Refinery and Ethylene project.

It conveniently sources feedstock “across the wall” from its neighbors, the company said in a statement.

Given the oversaturation of China’s standard ABS market, this plant is focused on specialty grades and high-end standard grades, serving processors in South and East China. The company said it is supplying materials to appliances giants as well as makers of consumer products and toys.

The total investment of the plant comes to 2.5 billion yuan ($400.8 million).

The project was initiated in 2008, when the two companies signed a framework agreement.