QINGDAO, China—Coal chemical firm Jinneng Science & Technology broke ground on its 16 million-sq.-ft. site at the Dongjiakou Economic Zone in Qingdao on Dec. 26. It is located near a Doublestar factory, which is one of the company's major clients.
Phase one of the project includes 480,000 metric tons of annual carbon black capacity, with eight lines capable of 60,000 tons each. The facility also is slated to have 900,000 tons of propane dehydrogenation (PDH) and 450,000 tons of high performance polypropylene capacity each year.
Nearly $1.4 billion has been earmarked for the project, which does not yet have a timeline for completion, Jinneng said. The second phase of the project will begin once the first phase is on stream.I
In addition to Doublestar, Jinneng also supplies to Sentury, Sailun and Bridgestone.
Headquartered in nearby Dezhou, Jinneng currently has annual capacities of 300,000 tons of carbon black capacity and 60,000 tons of white carbon black. In 2017, the Shanghai-listed company reported a 57 percent jump in revenue to $964 million, 21 percent of which was from these two segments.