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03. July 2007

CHINA: The World’s Largest Polysulfide Rubber Project Goes into Production in Jiangsu Province

BEIJING--July 3, 2007--The world’s largest polysulfide
rubber project, embodying one-third of the world’s
total production, went into production in Taixing
city, Jiangsu province. Phase I construction of this
project attracted a total investment of $18.8 million
and has a designed production capacity of 10,000 tons.
Sales are expected to reach over $36 million within
the year.

Construction of this project dates back to 2005, five
years after Akzo Nobel built its first company in
Taixing with an investment of $25 million. This first
company focuses on the production of chloroacetic acid
and it has forged a chloroacetic acid base with a
production capacity of 25,000 tons per year. Its
annual sales exceed $31 million and profit goes beyond
$1.3 million. Then in 2005, Akzo Nobel garnered $17.50
million and started the construction of this
polysulfide rubber project.

Both projects are located at the China Fine Chemical
Industry Taixing Park. The park has four sub-parks:
the major project industrial park; the small and
medium-size scientific and technological industrial
park; textile, printing and dyeing industrial park;
and Taiwan business people Greater Shanghai industrial
park. According to statistics in 2004, the park had 80
companies, 28 of which are invested by foreign
companies; the contracted foreign investment stood at
$500 million and the actually used foreign investment
stood at $350 million.

This park’s target for the year 2010 is to attract
over 100 foreign invested companies, obtain a total
investment of over $2 billion and realize a gross
domestic production of $525 million.

Akzo Nobel started its business in China in the early
1980s when it established Akzo Nobel China in Beijing.
Akzo Nobel now has 21 operations in China among which
8 are chemical plants.

Polysulfide rubber falls into the category of high and
new technology products that the Ministry of Commerce
of China and the Ministry of Science and Technology of
China encourage foreign investors to put their money
in.



(Syed Rashid Ali, Karachi, Pakistan)

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