Total investment in the project, expected to be completed by the end of November, is estimated at approximately $1.47m.
The company said that it is also expanding its overall production and facility capacity in order to capitalize on China’s growing demand for refined petrochemical products.
Growing demand driven by China’s economic growth, along with under-developed domestic production capacity, has led to an imbalance in supply and demand for refined petrochemical products that is likely to persist for many years. Due to the supply-demand imbalance, the company’s customer order requests for 2010 have exceeded its current annual production capacity, the company added.
At March 31, 2010, Keyuan had annual petrochemical manufacturing capacity of 550,000MT of a variety of petrochemical products, including BTX aromatics. In order to grow its business to meet its backlog and increasing customer demand, Keyuan plans to expand its petrochemical manufacturing capacity to 600,00 MT in 2011.
The company also plans to double its storage capacity to 200,000MT by the end of 2011, and to add a new raw material pre-treatment facility and an asphalt production facility in 2012.
