Xuancheng, China – The world’s 18th largest non-tire rubber producer Zhongding is planning to build a speciality rubber mixing center with €20 million (159 million yuan) investment, according its stock exchange filing.
Located at the company’s existing site in Xuancheng’s Ningguo Economic and Technological Development Zone, the facility will have a 6,700 tonne per year capacity for a series of specialty rubber such as ACM, fluorubber, ECO, HNBR, CSM and silicone rubber.
Zhongding has been rolling out high-end rubber products which raises its demand for specialty rubber, said the filing. The new facility will supply to Zhongding’s own production lines.
Covering an area of 5,000 square metres, the new project is expected to take 24 months to finish and create 50 new jobs. It is predicted to generate €7 million net profit annually on €55 million revenue when in operation.
According to the filing, last year China’s rubber and plastics sector saw a 5% year-on-year rise in revenue to €413 billion. Profit increased by 7% to €26 billion.
Over 70% of global rubber consumption is used in the automotive industry, of which 40% are non-tire products, the filing added. The trends for vehicle to become smaller, faster and more comfortable as well as the tightening environmental regulations are making specialty rubber increasingly popular.
“We expect [China’s] rubber sector to continue its steady growth and the automotive industry’s rapid development will sure lead the progress in related sectors,” said the filing.