China's ShengdaTech to invest $56m in NPCC unit

26 June 2008 03:29  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s ShengdaTech said late on Wednesday that it would invest $56m to build a 120,000 tonne nano-precipitated calcium carbonate (NPCC) plant in Zibo, Shangdong province.

The investment would be made through its wholly owned subsidiary, Faith Bloom Ltd.

“This investment is the fulfilment of our stated plan to invest a portion of the proceeds from our recent financing to build a new NPCC production facility to meet the growing demand for NPCC from our customers”, Xiangzhi Chen, President and CEO, said in a statement.

The new facility will employ the company’s advanced membrane dispersion technology which purportedly would lower production costs relatively to the traditional production methods.

The local government will provide ShengdaTech with sources of supply for feedstock limestone (calcium carbonate) with reserves of at least 150m tonnes. Mining rights are expected within 12 months, the statement said.

“The location of the facility is based on its close proximity to a high-quality limestone mine, to our current and prospective customers as well as to a shipping port that will serve our growing international customer base more efficiently”, Chen added.

Construction of the plant is expected to begin in August 2008. The firm has also made plans to expand total NPCC production capacity of NPCC to 310,000 tonnes by the end of 2009.

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By: Bohan Loh
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