HAINAN, China—Hainan Sinochem Rubber, a subsidiary of Sinochem Group based in Danzhou, Hainan province, recently started trial runs for its second factory and expects full operation in October, according to the company.
The new factory has received about $24.2 million total investment and has an annual capacity of 45,000 tons per year.
Production includes 7,500 tons per year of TSR5 natural rubber capacity, 7,500 tons per year of TSR9710 natural rubber capacity, 15,000 tons per year of TSR20 natural rubber capacity, and 15,000 tons per year of latex natural rubber capacity, according to Sinochem Group's website.
With the second factory, Hainan Sinochem currently has a 90,000 tons per year rubber capacity and 75,000 tons per year projected annual production volume, with more than $318.8 million expected for the annual production value.
“There's no worries about excess capacity in China,” said Hou Fengxia, vice chairman of China Rubber Industry Association. “For instance, in 2013, the country consumed 4 million tons of natural rubber while only 800,000 tons were produced domestically.”