NINGBO, CHINA (Jan. 20, 10:25 a.m. ET) — China's Keyuan Petrochemicals Inc. said Jan. 19 it plans to build a 400,000 metric ton ABS resin plant in Guangxi province, allowing it to expand its markets in south and west China and in Southeast Asia.
Construction is scheduled to begin in February.
“It will further diversify our product and customer base, as well as expand our access to the Southern part and Western part of China and the ASEAN (Association of Southeast Asian Nations) markets,” said Chunfeng Tao, chairman and CEO, in a statement. “We expect to fund this project with bank financing and internal cash flows.”
Keyuan, based in Ningbo, Zhejiang province, said it chose the location in Fangchenggang, Guangxi, for its proximity to raw materials, stable access to power and skilled labor, and market potential.
The company was established in 2007, and is a subsidiary of Keyuan Plastics. It said it started production in 2010 in a facility with a designed capacity of 720,000 metric tons, making a variety of petrochemical products, including propylene and styrene.
In October, the company said it received a delisting notice from the U.S. NASDAQ exchange and would begin trading its stock in over-the-counter exchanges.