Hainan Sinochem to start full operation at second plant

Jane Ho, ERJ China correspondent

Hainan, China - Hainan Sinochem Rubber, a subsidiary of Sinochem Group based in Danzhou, Hainan province, recently started trial runs for its second factory and expects full operation in October, according to the company.

The new factory has received 153 million Yuan (€19 million) total investment and has an annual capacity of 45kT/year.

Production includes 7.5kT/year TSR5 natural rubber capacity, 7.5kT/year TSR9710 natural rubber capacity, 15kT/year TSR20 natural rubber capacity, and 15kT/year latex natural rubber capacity, according to Sinochem Group's website.

With the second factory, Hainan Sinochem currently has a 90kT/year rubber capacity and 75kT/year projected annual production volume, with over 2 billion Yuan (€250 million) expected for the annual production value.

"There's no worries about excess capacity in China," said Hou Fengxia, vice chairman of China Rubber Industry Association. "For instance, in 2013, the country consumed 4 million tonnes of natural rubber while only 800,000 tonnes were produced domestically."