Sinostar PEC Holdings to invest 1.2b yuan in new plant

THE board of directors of Sinostar PEC Holdings has approved a 1.2 billion yuan (S$239.8 million) investment by the group's subsidiary in the construction of a polypropylene production plant in Shandong province, China.

The plant is expected to have an estimated production capacity of processing 200,000 tonnes of polypropylene per annum.

This increases the group's production capability of polypropylene from 50,000 tonnes per annum to 250,000 tonnes per annum, said Sinostar, which produces and supplies downstream petrochemical products.

It will take about two years for the plant to be fully constructed and ready for trial runs.

Sinostar had earlier announced that it was acquiring Dongming Qianhai Petrochemical, which will produce an additional 90,000 tonnes of unprocessed propylene per annum for the group.