Zhangjiagang, China - Red Avenue New Materials is expanding its rubber additive capacity in Zhangjiagang, Jiangsu, the company has announced.
The programme has involved a first round of capital injection of €44 million (349 million yuan) in the related subsidiary this October.
Funding was raised from a Red Avenue IPO on the Shanghai Stock Exchange this June.
The expansion, under fully-owned subsidiary Sino Legend (China) Chemical, includes a 20ktpa additive project with €7 million total investment and a 27ktpa additive project with €30 million total investment.
The prospectus refers only to new capacity for phenolic-resin - a tire cord adhesive - but does make clear if other rubber chemicals or additives are involved in either project. ERJ is requesting further details.
The first project started construction earlier this year, according the announcement by Red Avenue, based in Shanghai.
Red Avenue claims to be China’s largest speciality rubber additives maker. It supplies major Chinese tire makers, such as Zhongce, Triangle and Hengfeng.
For the first half of 2018, Red Avenue reported a 24% year-on-year rise in sales to €136 million; net profit jumped 49% to €28 million.