Keyuan to build SBS plant in China

ERJ staff report (DS)

Ningbo, China -- Keyuan Petrochemicals, Inc. has acquired land in China and will begin building a new 70 000 tonne/year Styrene-Butadiene-Styrene ("SBS") production facility on the land, in addition to a storage facility, a raw material pre-treatment facility and an asphalt production facility.

"We are pleased to have secured the land we needed to begin our next phase of expansion," said Chungfeng Tao, Chairman and Chief Executive Officer of Keyuan. "We see a tremendous opportunity to gain market share in the SBS market, given the value-added nature of the product and the supply-demand imbalance that exists today. Our expansion plan includes four new state-of-the-art facilities and they will not only allow us to increase our capacity and expand into new markets but also make us more efficient."

The total cost of the SBS facility will be approximately $17.5 million. Management expects the SBS facility will generate approximately $110 million in sales and between $10 million to $11 million in net profit annually once it reaches full capacity.

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Press release from Keyuan