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Mitsui Builds New Plant

26 March 2004

Japan's Mitsui Chemicals plans to build a polypropylene compound plant in southern China to capture the growing demand for plastics used in producing automotive parts.

The plant will be built in Zhongshan city in Guangdong province, southern China, and will have a nameplate capacity to produce 15,000 metric tons a year, said a spokesman for Mitsui Chemicals.

Commercial production at the plant is set to start in April 2005. The spokesman declined to elaborate on the costs of the plant's construction.

""Polypropylene compound demand will be steadily growing in China, especially from Japanese automakers, which have been building their manufacturing plants in southern China,"" the spokesman said.

Mitsui plans to form a subsidiary, tentatively named Mitsui Chemicals Plastic Composites Co., which will be responsible for manufacturing and sales of polypropylene compound there.





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