Columbian Chemicals (Jining) to break ground on carbon black project

Shandong, China - Columbian Chemicals (Jining), a joint venture with China's Jining Carbon Group, is to break ground on a 240-kilotonnes-per-annum (ktpa) carbon black project in late February, according to the company.

The project, located at Jibei High-tech Industrial Park in Jining, Shandong province, has 1.2 billion yuan (€169 million) investment earmarked and consists of two-phases, each with a 120ktpa capacity.

Phase one is scheduled to be completed in Oct 2015, phase two in Dec 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 existingcoal tar distillation plant at the site. Carbon black made in the plant is planned for radial tire production.

The whole project is expected to bring in 579 million yuan (€78 million) profit on 2.3 billion yuan (€78 million) sales when in operation.

On 10 Feb, Columbian Chemicals’ owner Birla Carbon unveiled proposals for the two-stage project, which is located 5 km to the north of Jining City in Shandong.

Phase 1 with a capacity of 120ktpa is expected to become operational in mid-2016, and phase 2 with an incremental capacity of 120ktpa expected to come on-line two-to-three years after completion of phase 1.

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).

At the time of its statement, Birla Carbon said “construction of the facility was contingent upon receiving final internal and regulatory approvals and the finalisation of the joint venture between Birla Carbon, Jining Carbon and International Finance Corp.”