Qingdao, China – Coal chemical firm Jinneng Science & Technology broke ground on its 1.5-million-square-metre new site at the Dongjiakou Economic Zone in Qingdao, Shandong on 26 December.
Phase one of the project includes 480ktpa carbon black in eight lines each with 60ktpa capacity, 900ktpa propane dehydrogenation (PDH) and 450ktpa high performance polypropylene facilities.
The project has 9 billion yuan (€1.2 billion) earmarked to it, but completion time has not been set yet, Jinneng told ERJ. It will start building phase two after phase one is on stream.
Planned capacity includes 450ktpa high performance polypropylene, 900ktpa PDH, 260kpta acrylonitrile and 100ktpa methylmethacrylate (MMA) with €1.5 billion investment.
The new site is expected to generate €3.9 annual sales when in full operation.
The unit is adjacent to a factory of Doublestar, one of Jinneng’s major clients for carbon black. The company also supplies to Sentury, Sailun and Bridgestone.
Headquartered in nearby Dezhou, Jinneng currently has 300ktpa carbon black capacity and 60ktpa white carbon black capacity.
In 2017, the Shanghai-listed company reported a 57% jump in revenue to €840 million, 21% of which was from these two segments.