Haikou, Hainan - Hainan Rubber is planning to invest €18 million (139 million yuan) in a new plant for green, deproteinised natural rubber (DPNR).
The investment was approved by the company board on 19 Dec 2018, according to a Hainan Rubber announcement on the day.
Deproteinisation can help to remove the allergy risks posed by standard NR latex products.
Located in Changjiang, the plant's planned capacity includes 15 ktpa concentrated latex, 3 ktpa deproteinised constant-viscosity natural rubber, 5 ktpa wet constant-viscosity rubber, 10 ktpa dry constant-viscosity rubber and 1 ktpa unsomked sheets.
Construction of the factory is slated to complete in October 2019, followed by two months of testing and twelve months of trial run before coming on stream.
The project is expected to bring in €2.7 million annual net profit on €33 million revenue when in full operation, said the announcement.
The project will help raise Hainan Rubber's "market share in high-quality natural rubber," added the announcement.
Hainan has, however, indicated that fluctuations in natural rubber prices could affect the feasibility of the project.