BlueStar NCM to Spend RMB3.8 BLN in Two Silicone Projects      

BlueStar New Chemical Material Co., Ltd. (BlueStar NCM, SH: 600299) said on July 11th that its Jiangxi Blue Star Chemical Work plans to build a 400 000 t/a silicone monomer project phase I and a 120 000 t/a facility for silicone downstream products.
   Based in Yongxiu county, Jiangxi province, Jiangxi Blue Star Chemical Work engages in the manufacture and development of silicone products, with R & D centers.
   The first phase - 200 000 t/a silicone monomer project will cost RMB2.37 billion. Construction will last 18 months.
   Silicone polymer, with mixed properties of both inorganic and organic compound, can be widely used in electronic and electrics, construction, chemicals, textile, light industry and medical applications. And with extendable varieties of silicone products, their applications are wider and wider. They have become a key part of the chemical advanced material family, and the silicone sector should be developed with more government supports given its importance in the national economy.
   The planned projects in Jiangxi are in line with BlueStar NCM's development strategy toward an integrated silicone industry chain in both upstream and downstream businesses. With that project, the company's core competencies would be improved, and its advantage be expanded in the silicone industry.
   Meanwhile, the 120 000 t/a silicone downstream project would need total investment of RMB1.48 billion, including 27.13 million Euros. This project will be based on BSI technology, with production facilities for seven downstream silicone products including sealant and crepe rubber. In total, it will house 26 production lines including one for raw material treatment.
   The silicone downstream series would complete a full silicone industry chain, enabling BlueStar NCM better deal with market risks.
   The two projects would not only strengthen BlueStar NCM's leading position in domestic silicone sector, but also expedite the development of domestic silicone industry, help China reduce reliance on imports and ease domestic supply shortfall, the company said.