OREANDA-NEWS. June 03, 2011. Japan's Sumitomo Chemical will build a 10,000 mt/year polypropylene compound plant in Dalian, in northeast China's Liaoning province, the company said.

The PP compound plant, which will be operated by a 50:50 joint venture between Sumitomo Chemical and Zhuhai Sumika Polymer, is expected to begin operations over September-November 2012.

The JV to be called Sumika Polymer Compounds Dalian Company will be incorporated in August. Sumitomo decided to build the plant because it expects demand for PP compounds in automobile production to increase. Zhuhai Sumika Polymer is 55% owned by Sumitomo Chemical and 45% by Japan's Toyo Ink.

It already has a 22,000 mt/year PP compounds plant in Zhuhai, in southern China's Guangdong province.