CHIZHOU, China—China's PU additives maker Hengguangda broke ground last month on a new plant that will produce 18,000 metric tons of PU additives each year and 10,000 tons of PU systems.
The $45 million plant is located at its existing site in Chizhou's Dongzhi Economic Development Zone.
The additives capacity breaks down as:
- 3,000 tons/year of amine additives;
- 10,000 tons/year of silicone additives; and
- 5,000 tons/year of tin additives.
Originally, the plant contained capacity for 100,000 units a year of high-speed train and aeroplane seating capacity, but that was canceled earlier this year because of market conditions and restraints at the site. The company told UTECH-polyurethane.com that this remains canceled.
The project is expected to generate $144 million in annual sales, the local government said.
Hengguangda claimed a 63 percent share of the Chinese market for its tin additives this year. Its share of the silicones market fell slightly to 21.4 percent. The market share for amines has dropped from 20 percent to 15.3 percent, said the company's website.