BAOTOU, China—China's Jinjiao High-Tech (Shanghai) signed a contract with the local government of Baotou in October to set up a new chloroprene rubber plant.
The plant, located at the city's Rare Earth New Materials Industrial Park, represents a $736 million investment and will be built in three phases. According to the local government website, the first phase will have a production capacity of 30,000 metric tons per year and will require a $289 million investment.
Depending on market and other conditions, Jinjiao High-Tech plans to expand annual capacity by 70,000 tons and 50,000 tons in phases two and three, respectively. It expects to invest around $231 million in phase two and $216 million in phase three.
The company also is mulling a $65 million investment for transmission belt, impregnated medical gloves, hydrogenated polymer and waterproof coating facilities in the city if the chloroprene rubber project is successful, according to the government website.
Backed by Jinzhong, Shanxi-headquartered gelatin foods group Jinjiao, the Shanghai high-tech arm was opened in 2012 with businesses covering chemical raw materials, energy saving materials and high polymer composites.