Rubber Journal Asia

New SBS facility to meet growing Chinese demand
Chinese petrochemical products supplier Keyuan Petrochemicals will build a 70,000 tonnes/year styrene butadiene styrene (SBS) facility in Ningbo, Zhejiang province, by the end of 2011. To cost US$17.5 million, the facility will cater to China's current demand of 750,000 tonnes, which is more than the domestic supply of 600,000 tonnes/year

As a result of the shortfall in supply, China imports a substantial percentage of its needs from Japan, Korea, Taiwan and the US. Demand for SBS in China is expected to grow 6%-7% a year for the next several years

Keyuan expects to generate net profit margins of 10% for the SBS it produces once it reaches normal production levels. The new facility is anticipated to achieve 80% utilisation rate in 2012, the first full year of production, and generate approximately US$110 million of sales and US$11 million of net income.

Having commenced operations in 2009, Keyuan's operations include an annual petrochemical manufacturing capacity of 550,000 tonnes of a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods