Kumho invests $40 million on SB-latex plant in China

Seoul. Korea -- Kumho Petrochemical has stepped up its investment in Asia with a groundbreaking ceremony for a $40 million (€29.5 million), 150 ktpa styrene-butadiene-latex plant in Rizhao, China.

The 66 000 m² plant, which will be the company's third in China, is located within the Taoluo Industrial complex in Rizhao. It will begin operation in 2008 and will produce SB-Latex for coating material for paper as well as materials for carpets and asphalt modifiers.

The new facility, which will have over double the 70 000-tonne capacity of Kumho Petrochemical's Ulsan plant in Korea, is expected to generate sales revenue of $130 million per year.

"We expect to generate considerable synergy from the combination of Shandong Jinma Industrial Group's manufacturing technology Kumho Petrochemical's extensive production experience,” said a Kumho spokesperson, in a statement.

“We will strengthen our position in the eastern and north-eastern regions through making the most of the existing customers and the distribution network of our partner,” added the spokesperson.

Half of the proposed $40 million investment for the factory will come from the company itself and the other half from Rizhao-based Shandong Jinma Industrial Group.

According to Kumho the plant is part of its mid-to-long term expansion strategy, to tap further into overseas markets.

Shandong Jinma Industrial Group is a private company with 12 affiliates that operate in the petrochemical, architecture, machinery and real estate industries.