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          ChemChina to boost investment

          Updated: 2011-12-23 11:00

          By Huang Zhiling (China Daily)

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          ChemChina to boost investment

          Spools of synthetic fiber displayed at a trade show in Qingdao, Shandong province. China Bluestar Chengrand Chemical Co Ltd, a subsidiary of China National Chemical Corp, aims to be the third-largest producer of the synthetic fiber para-aramid in the world by 2015. [Photo/China Daily]

          Synthetic fiber maker will spend 3 billion yuan on production line

          CHENGDU - China is expected to become the third-largest producer of the synthetic fiber para-aramid in the world by 2015, lagging just behind the United States and Japan, said Cao Xianjun, president of China Bluestar Chengrand Chemical Co Ltd.

          Cao said Bluestar Chengrand, a subsidiary of China National Chemical Corp (ChemChina), the country's biggest chemical company, can now produce an annual 1,000 tons of para-aramid, a strong and heat-resistant fiber that is widely used in the aerospace industry and the military.

          The chemical product also has uses in components for automobiles, ships and high-speed trains.

          Bluestar Chengrand, based in Chengdu, Sichuan province, has made discoveries related to resin polymerization, spinning and solvent recovery and now owns 16 patents pertaining to various technologies, Cao said.

          After seeing success from a trial of the para-aramid project, Bluestar Chengrand has embarked on research to start the project's second phase.

          It plans to invest about 3 billion yuan ($476 million) to set up both a production line to make 10,000 tons of para-aramid a year and equipment to manufacture composite materials made of para-aramid.

          "After the line goes into operation in 2015, Bluestar Chengrand will be the third-largest producer of para-aramid in the world after DuPont in the United States and Teijin in Japan," Cao said.

          Bluestar Chengrand's plan to increase production comes as the result, in part, of research and development (R&D) conducted by ChemChina.

          ChemChina has pledged to boost its strength by investing about 7 billion yuan a year in the production of para-aramid from 2011 to 2015.

          Ren Jianxin, president of ChemChina, said the step will help develop advanced technology and strengthen the company.

          It comes at a time when ChemChina is trying to differentiate its business from other companies' to maintain growth.

          "We will invest about 3.5 percent of our annual sales into our R&D division every year, and also consider building up several research institutes and R&D bases across the country," Ren said.

          In five years, ChemChina aims to make 200 billion yuan from sales each year. In 2010, it made 140 billion yuan.

          Ren said ChemChina will center its efforts until 2015 on chemical-materials science, environmental sciences and life sciences.

          The US private equity fund Blackstone Group became a shareholder in China National Bluestar Group Corp (Bluestar), a subsidiary of ChemChina, in 2008.

          Blackstone invested $600 million to obtain a 20 percent stake in Bluestar, making the company a Sino-US joint venture.

           

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