25 September 2012 11:28 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Zibo Qixiang Tengda Chemical plans to invest yuan (CNY) 3.9bn ($618m) to build facilities for producing maleic anhydride (MA), 1,4-butanediol (BDO), succinic acid and polybutylene succinate (PBS) at Zibo in Shandong province, the company said on Tuesday.
The facilities will be built in two phases. The first phase comprises the construction of a 100,000 tonne/year MA unit and a 55,000 tonne/year BDO unit, the company said in a statement to the Shenzhen Stock Exchange.
The second phase involves the construction of a 100,000 tonne/year MA unit, a 55,000 tonne/year BDO unit, a 75,000 tonne/year succinic acid unit and a 150,000 tonne/year PBS plant, the statement said.
The first phase is expected to take around one year, while the second phase may take one and a half years to be completed, according to the statement.
The company plans to raise around CNY2bn through issuing new shares and the remaining funds through other channels to finance the project, it said.
The project will diversify the company’s product portfolio and extend its industry chain, thus improving its profitability, it said.
The company mainly produces butadiene (BD) and methyl ethyl ketone (MEK) at present.
($1 = CNY6.31)
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