New chloroprene rubber capacity emerges in China

Changzhi, China – China’s state-owned Changshou Chemical has relocated its chloroprene rubber production plant from Chongqing to Changzhi, Shanxi province. The project took two years to complete.

With 40 kilotonnes per annuam (ktpa) planned capacity, the plant started trial runs in July 2017 and began partial operation in November, according to official information.

The facility is expected to reach 30ktpa production volume this year and will come fully on stream in 2019, a source close to the project told ERJ.

The new plant is run by a joint venture, called Huojia Changshou Chemical Synthetic Rubber. This was formed between Changshou and Huojia Industrial, understood to be private supply-chain company based in the region.

According to the industry source, with 45ktpa demand in the China market, the new facility could trigger price competition with Shanna Synthetic Rubber – the country’s only other chloroprene rubber maker with Chinese ownership.

Located in Datong, Shanxi, Shanna is a joint venture between ChemChina affiliate Shanxi Synthetic Rubber and Armenia’s chemical firm Nairit.

Shanna’s chloroprene rubber plant is said to have a nameplate capacity of 30ktpa on the company’s website.

According to ERJ’s source, the company has 20ktpa production today and is mulling expansion to 30ktpa.