ERJ staff report (RD)
Singapore -- Rubber accelerator producer China Sunsine Chemical Holdings Ltd. has entered into an MOU with the Weifang local government in China to acquire around 187 000-sq.m of land at the Weifang Binhai Economic Development Zone (WFEZ) in Shandong Province, China.
The new production site, which will produce at least 50 000 tons of accelerators per year, is intended to replace the company's existing facility at Shanxian, Shandong Province, and meet future demand, a 26 April company statement said.
The location of the site, the statement said, is closer to the company's local major tyre customers -- including Shandong YongSheng Rubber, Shandong ShengTai Rubber and Zibo Shihong Chemical Industry Co. Ltd. -- and will translate to lower transportation and warehousing costs and ensure a stable supply of raw materials.
Depending on the closure date of Facility 1 as well as market demand, the new facility will be built in phases. â€œIn phase 1, we will build a 15 000 ton MBT plant to satisfy internal production requirements as MBT is an intermediary material for other accelerator products,â€ the company said, adding that Phase 1 construction, along with the purchase of the WFEZ land, is budgeted at RMB 100 million (Euro 11 million).
China Sunsine expects the land purchase to be completed by the end of May, with phase 1 construction expected to be completed in the first quarter of next year.
â€œForging ahead, we will continue to grow and plan for the future. The Weifang site with its strong Government support has much potential and will serve as our bridge to the next level of growth,â€ said Xu Cheng Qiu, executive chairman of China Sunsine.
China Sunsine is a specialty chemical producer selling accelerators, anti-oxidant, vulcanising agent and antiscorching agents to major global tyre manufacturers.
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Press release from China Sunsine Chemical Holdings Ltd.