China: Degussa – carbon black

Degussa has confirmed its project toinstall a fourth production line at theQingdao carbon black plant, which willraise capacity here to 100,000tonnes/y. Meanwhile, the installationof the third line is now nearingcompletion and this will raise capacityhere from 50,000 tonnes/y to 75,000tonnes/y. Degussa has a 52%financial stake in the Qingdao carbonblack venture, Zhenya has 33% andDEG has 15%. Virtually all of theoutput from Qingdao will be sold tothe Chinese tyre industry. China isnow the world’s biggest market fortruck tyres and the third biggestmarket for all types of tyres.

European Rubber Journal, Mar/Apr 2005, 187 (2), 36

China: DyStar – textile colorants

DyStar has been owned by PlatinumEquity (a private equity fund, based inLos Angeles) since last August. (See‘Focus on Pigments’, Dec 2004, 6).From the outset, the new owner madeit clear that it would scale back itsoperations in Germany and focusmore on investment in Asia. Thecompany has now commenced workon building a new $55 M textilecolorants plant at Nanjing. The newplant will employ 400 people and willmake colorants for cellulosic andsynthetic fibres. It should be on-stream by June 2006.

This will be DyStar’s third plant inChina, the others being at Wuxi andQingdao. DyStar believes that Chinawill account for 40% of global textilesproduction “in the medium term” so itis keen to readjust the geographicalbalance of its own operations.

Chemical and Engineering News, 21 Mar 2005, 83(12), 15-16 (Website: http://www.cen-online.org) &Chemical Market Reporter, 21 Mar 2005(http://www.chemicalmarketreporter.com)

China: Elementis – chrome pigments

Elementis reports that its new chromepigments plant at TaiChang (Shanghaiprovince) was successfullycommissioned last year and is nowconsistently achieving unit productioncosts that are as much as 50% belowcosts of similar facilities in the US orEurope. Elementis has also recentlypushed through a 25% increase inchrome pigment prices. Hence, the

company anticipates substantiallyimproved profit margins on its chromepigments business in 2005.

The company’s new iron oxidepigments plant at TaiChang, whichcost £10 M to build, was officiallyinaugurated in March. As yet, nodetails have been released on thescale of either of these inorganicpigment facilities.

European Chemical News, 21 Feb 2005, 82 (2135), 6& 28 Mar 2005, 82 (2140), 31

China: Hebei Xinji – barium &strontium carbonates & nano-particulate CaCO3

The Hebei Xinji Chemical Group hasembarked on a major Rmb 100 Minvestment programme. At GuizhouTianzhu and Chonging Tongliang, it isestablishing new facilities for makingbarium and strontium carbonates, withthe aim of reducing its unit productioncosts by Rmb 400 per tonne and Rmb550 per tonne respectively.

Associated with these projects, anew 100 tonnes/y fluorescentcompounds plant is expected to comeon-stream in April 2005.

A nanoparticulate calciumcarbonate plant is due for completionin June 2005, but the size andlocation have not been revealed.Other projects include: a 5000tonnes/y thiourea plant, facilities formaking pharmaceutical intermediatesand refurbishment of the recentlyacquired Xinji petrochemical complex.For 2005, Hebei Xinji Chemical isforecasting pre-tax profit at Rmb 30 Mon sales of Rmb 280 M.

China Chemical Reporter, 26 Mar 2005, 16 (9), 11

China: Maoming/Haiyin – kaolin

Maoming Kaolin Sci-Tech plans tospend Rmb 283 M to establish a300,000 tonnes/y kaolin operation atHepu in Guangxi province. Atoperations elsewhere in China,Maoming already produces about80,000 tonnes/y of kaolin, suitable foruse in paper manufacture. Haiyin CoLtd, which has an 87.91% financialstake in Maoming, recently reportedits financial results for the first ninemonths of calendar year 2004. Itreported a 13.86% gross profit marginon its carbon black business, withsales recorded at Rmb 97.75 M. Itreported a 43.71% gross profit margin

on its kaolin business, with salesrecorded at Rmb 80.04 M.

China Chemical Reporter, 26 Feb 2005, 16 (5/6), 7

China: Wuxi Haopu – TiO2

Wuxi Haopu Titanium Co Ltd beganthe “wet commissioning” phase of its30,000 tonnes/y TiO2 pigment planton 10 March 2005. This is a sulfate-route plant, designed to producemainly rutile grades. Wuxi Haopuexpects to generate annual salesrevenues of Rmb 450 M when thenew plant is fully up and running.

China Chemical Reporter, 26 Mar 2005, 16 (9), 12

China: YaKeLa – carbon black

YaKeLa Carbon Black, a wholly-owned subsidiary of China Energy &Carbon Black Holdings Inc, hassecured contracts to supply carbonblack to four major rubbermanufacturers. YaKeLa sells itsproducts under the Daixin and Tabeibrandnames. Hongzhou Chong CheTyres has placed orders for 4000tonnes; Guizhou Guiyang Tyres hasplaced orders for 2500 tonnes;DongHua Rubber has placed ordersfor 1000 tonnes; and DongTianRubber Chemicals has placed ordersfor 800 tonnes.

European Rubber Journal, Mar/Apr 2005, 187 (2), 36

China, Japan & Thailand: TokuyamaChemical – precipitated silica

Tokuyama Chemical (Zhejiang) Co isto be established in China as awholly-owned subsidiary of theTokuyama group, headquartered inJapan. The new company will have aninitial equity capital of $14 M. It iscommitted to investing $30 M inbuilding a new precipitated silica plantat Jiaxing, due to come on-streamtowards the end of 2006 with an initialcapacity of 5000 tonnes/y.

Meanwhile, Tokuyama Chemical isexpanding its Tokuyama precipitatedsilica plant in Yamaguchi prefecture(Japan) from 15,000 tonnes/y to20,000 tonnes/y.

In Thailand, Pompat Chemical – asubsidiary within the Tokuyama group– expanded its precipitated silica plantat Map Ta Phut to 18,000 tonnes/yabout four years ago. (See ‘Focus onPigments’, Oct 2000, 6). Last year,

4 MAY 2005

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