Sichuan Deyang New Special Material Co. Ltd., which claims to be the only commercialized producer of polyphenylene sulfide resin in China, is beefing up its production.
The company will increase its capacity of PPS resin to 66 million pounds by May, slightly lower than the original plan of 77 million pounds, regional sales manager Jianlin He told Plastics News. The company started China's first PPS line in 2002 with annual capacity of 2.2 million pounds.
A separate project for 11 million pounds of PPS fiber also is in the works. The initial launch in May will feature 1.1 million pounds of annual capacity.
Sichuan Deyang also makes PPS compounds, mainly for the auto industry.
Although the firm's two production bases are located in the southwestern province, its primary markets are East China and South China, the company said at Chinaplas. The firm exports about 30 percent of its output.
Sichuan Deyang's parent company, Sichuan Huaton Industry Commerce Development Shareholding Co. Ltd., is reported to be receiving $280 million of funding from Morgan Stanley.
According to the Chinese financial newspaper 21st Century Economic Report, Morgan Stanley has helped Huaton finance $200 million by issuing bonds to Morgan Stanley's equity management subsidiary. In addition, Morgan Stanley inked an agreement to buy less than 20 percent of Huaton's stake with $80 million.