China chemicals major plans 250ktpa speciality rubber project

Binzhou City, China — A Chinese chemicals major has unveiled plans to develop a 250 kilotonne per annum (ktpa) integrated speciality rubber project in Beihai Economic Development Zone in Binzhou City, Shandong Province.

The project will be developed in two phases, with the 70ktpa halobutyl rubber unit approved as the initial stage, said Befar Group in a 17 July stock exchange filing.

A second phase will be submitted for approval and constructed "according to market conditions," the filing added.

The first phase, to be built by wholly owned subsidiary Shandong Binhua New Materials Co. Ltd, will require an investment of Yuan1.82 billion (€235 million), said the group.

The initial phase, explained Befar, is designed to produce halobutyl rubber, with the flexibility to alternate between chlorobutyl and bromobutyl grades.

Construction is scheduled to begin by 30 June 2027 and is expected to take 24 months.

According to the filing, the project will leverage the site's integrated 100ktpa isobutylene unit, with pipeline supply helping reduce transportation costs and ensure product quality.

Once operational, the facility will consume 63.7ktpa of isobutylene and will "simultaneously" eliminate around 110ktpa of MTBE capacity.

The move will help "balance MTBE supply and demand" while strengthening the competitiveness of Befar's C4 value chain.

The company described the project as using "mature, advanced and reliable" halobutyl rubber technology and said it is expected to have "good market prospects."

Befar estimates the first-phase investment will generate annual revenue of about Yuan1.14 billion and net profit of Yuan104 million.

According to the filing, the investment supports the group's "new energy + chemicals" strategy, with electricity to be supplied by its integrated renewable energy system as part of its transition to lower-carbon operations.

The project remains subject to government approvals.