SHANDONG, China—Columbian Chemicals (Jining), a joint venture with China's Jining Carbon Group, is set to break ground on a 240,000-ton-per-year carbon black project in late February, according to the company.
The $190-million project, located at Jibei High-tech Industrial Park in Jining, Shandong province, consists of two-phases, each with a 120,000-ton-per-year capacity.
Phase 1 is scheduled to be completed in October, with phase 2 to be completed in December, 2017, according to the local government's planning schedule.
The facilities include six carbon black production lines using wet granulation technique. Feedstock, including carbon black oil and anthracene oil, will be supplied by Jining Carbon from an existing coal tar distillation plant at the site. Carbon black from the plant will be used for radial tire production.
The project is expected to bring in $92 million profit when in operation.
Earlier this month, Columbian Chemicals' owner Birla Carbon unveiled proposals for the two-stage project, which is located 5 kilometers north of Jining City in Shandong.
Columbian Chemicals (Jining) will be built adjacent to an existing coal tar distillation plant of the Jining Carbon Group. This will supply most of the raw materials for Columbian Chemicals (Jining).
Birla Carbon said the facility is contingent upon receiving final internal and regulatory approvals of the joint venture between Birla Carbon, Jining Carbon and International Finance Corp.
Birla Carbon is one of the largest manufacturers and suppliers of carbon black globally. It operates 17 manufacturing facilities and setups in 15 countries, with a combined annual production capacity of more than two million tons.