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SINGAPORE : Mainboard-listed Li Heng Chemical Fibre Technologies on Thursday it intends to build a new polyamide or PA chip production plant in Fujian, China.
The new plant is estimated to cost about 715 million Chinese yuan or S$145.8 million.
A large portion of that cost will go to machinery and equipment.
Li Heng said the new plant will be funded by the company's internal resources.
The company currently has one PA plant in the Binhai Industrial Zone in Fujian, with a maximum annual capacity of about 70,000 metric tonnes.
This represents about 55 per cent of its estimated requirements for year 2010 and 40 per cent in 2011.
When the plant is completed, Li Heng expects to be self-sufficient in PA chips.
It added that the construction of the new PA chip plant will start in the third quarter of this year and is expected to be completed in the fourth quarter of 2011.
Looking ahead, the company also expects to achieve cost savings on production amid the newly-imposed anti-dumping tariffs by China on imported PA chips.
China has imposed anti-dumping tariffs on PA chips imported from the United States, the European Union, Russia and Taiwan at rates ranging from 4 per cent to 96.5 per cent for a period of five years from 22 April 2010. - CNA/ms
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