Kumho Petrochemical Co. broke ground on a 700,000-sq.-ft. SB-latex factory in Rizhao, the firm's third production base in China.
The project will cost $40 million, half from Kumho Petrochemical and the rest from Shandong Jinma Industrial Group, a Rizhao-based private company that operates in the petrochemical industry.
Production at the plant is set to begin in 2008, with expected annual capacity of 150,000 metric tons and estimated sales revenue of $130 million per year.
The production capacity will be more than double the capability of Kumho Petrochemical's Ulsan, South Korea, plant, which the firm said has the largest domestic market share of SB-latex.
The SB-latex primarily will be used as material for carpets, asphalt modifiers, tires and coating for paper.
Present at the groundbreaking ceremony June 6 in Rizhao were Chan-Gu Park, chairman of the petrochemical unit of Kumho Asiana Group; Yang Jun, mayor of Rizhao, Shandong Province; and Ma Zuwen, president of Shandong Jinma.