Jinneng Science & Technology invests heavily in new carbon black program

Jinneng Science & Technology Co., Ltd. announced Mar. 2 that it inked an investment cooperation agreement with the administration committee of Qingdao West Coast New Area, Shandong province.

Jinneng plans to invest 20.3 billion yuan to construct a new material and hydrogen energy comprehensive utilization program. In the first phase, it plans to invest 9 billion yuan.

The program is expected to be constructed in two phases. The first phase includes 900,000-ton/year propane dehydrogenation and 8×60,000-ton/year carbon black green utilization program, and 450,000-ton/year high-performance polypropylene program; while the second phase is under planning.

The first phase construction is scheduled to be completed before the end of Jun. 2020 and to enter pilot production. The second phase construction will be started by then.

Jinneng estimates the huge investment may lead to pressure on its cash flow but says it will make efforts to control the investment and ensure the success of the program.

Prices of carbon black products rose sharply since last year and the profits of producers surged, therefore, many producers mull over expanding their capacity.