Perstorp AB Invests $25 Million to Build Neopentyl Glycol Project in Zibo City, Shandong Province

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Researched by Industrial Info Resources (Sugar Land, Texas) -- Sweden Perstorp AB (Perstorp, Sweden), the world's largest polyalcohol manufacturer, has invested $25 million to build a neopentyl glycol project in Zibo City, Shandong Province. With the already existing trimethylolpropane (TMP) plant, Perstorp AB intends to build Zibo City into its largest manufacturing base in Asia.

This neopentyl glycol project is also located in the Qilu Chemical Industrial Park in Zibo City, which hosts the TMP plant. Perstorp AB's previous investment, the TMP plant, required an investment of $15 million. It has a production capacity of 15,000 tons per year and is China's largest producer of TMP. Perstorp AB holds a 51% share of this plant and the other stakeholder is Zibo Fufeng Tongsheng Chemical Company, Limited (Zibo City, Shandong Province).

Perstorp is one of the largest foreign investors in Zibo City. Through these two projects, it is expected to benefit from the advantages of a local presence and will have great opportunities for local partnership. The considerable amount of land left around the park provides Perstorp with enough room for further growth.

Perstorp's projects are strategically located next to Sinopec Qilu (SSE.600002) (Zibo City, Shandong Province), an important Chinese supplier of raw materials for TMP. Sinopec Qilu is one of China’s largest chemical companies, with sales revenue of $7.6 billion in 2005. Perstorp is looking forward to developing a strong partnership with the organization.

Perstorp is also holding preliminary negotiations with the local government about the establishment of a research and development center inside the park. If everything goes well, this will be the first research and development center in Zibo City established by a multinational chemical company.

Established in 1881, Perstorp is the largest chemical company in northern Europe and the No.1 polyalcohol manufacturer in the world. It holds leading positions in the specialty chemicals and material technology market, mainly for customers in the coating, plastic-processing and automotive industries. Perstorp has 1,800 employees and manufacturing units in nine countries in Asia, Europe, North and South America. Sales in 2006 totaled one billion dollars.

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