CNOOC & LG JV gives South China its first ABS plant

26-May-14

Despite being a major hub of plastics processing, South China has witnessed commencement of its first ABS plant only this year. As per Plasticsnews.com, CNOOC & LG Chem Petrochemicals Co. Ltd., a 50:50 joint venture between China’s state-owned CNOOC and Seoul-based LG Chem, has commenced production on its 150,000 ton phase one project in the spring of 2014. The total investment outlay has been pegged at about US$$400 mln. The plant is located in the Daya Bay Petrochemical Industrial District in Huizhou, Guangdong province, neighboring CSPS (a JV between CNOOC and Shell) and the Huizhou Refinery and Ethylene project. The company is “actively preparing for” the second phase, which has been approved by the provincial government and double the plant’s capacity to 300,000 tons upon completion. Given the oversaturation of China’s standard ABS market, this plant is focused on specialty grades and high-end standard grades, serving processors in South and East China. The company said it is supplying materials to appliances giants as well as makers of consumer products and toys.