Honam Petrochemical to start up new China PP compounding lines

18 May 2009 13:41  [Source: ICIS news]

GUANGZHOU, CHINA (ICIS news)--South Korea’s Honam Petrochemical plans to start up two new polypropylene (PP) compounding lines in Jiaxing, China, in October this year, a company source said on Monday.

“We will have an additional 10,800 tonnes/year of compounding capacity in China when the new plants come on stream,” said the source, who was speaking on the sidelines of the Chinaplas 2009 exhibition, in Guangzhou.

The producer would cater mainly to the local automobile industry from its existing PP compounding unit at the same site, which has an 18,000 tonne/year nameplate capacity, and the new units, the source said.

The source said that the Chinese government’s recent introduction of subsidies to encourage consumers in rural areas to buy automobiles had helped to support domestic automobile demand.

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By: Chow Bee Lin
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