Hong Kong, May 25, 2006 - Kingboard Chemical Holdings Limited (HKEx: 148) announces the Granding Opening of the Caustic Soda Plant, Phase II and hosts a Foundation Ceremony for Caustic Soda Plant Phase III in Hengyang, Hunan Province. The investmnet in Phase II expansion amounted to RMB235million. Phase III is expected to commence production by December 2007. Upon completion, the total capacity of caustic soda will be up to 15,800 tons per month.
Mr Paul Cheung Kwok-Wing, Chairman, Kingboard Chemical Holdings Ltd, said: "Caustic soda is a common chemical base for many industries and China as the world's factory has strong demand for this chemical. Since we can utilize local natural resources (salt) as raw material, we enjoy a low cost benefit in producing caustic soda in Hengyang."
The Group started its caustic soda business by acquiring an existing plant with monthly capacity of 2,500 tons in September 2003 in Hengyang, Hunan Province. Due to the strong market demand, the plant has been operating in full capacity. The Group implemented an expansion plan immediately after the acquisition. Currently, the capacity of caustic soda has increased to 7,500 tons per month. The increased output has been fully taken up by customers in the southern China region. Upon completion of Phase III expansion, the Group's total monthly capacity of caustic soda will increase further to 15,800 tons.
The caustic soda plant is located in Hengyang, Hunan Province, and is about 200 km from provincial capital Changsha. The expansion plan will be divided into three phases, turning out products including, Sodium Hydroxide (NaOH), Hydrochloric Acid (HCL), Liquid Chlorine(CL2), Chloropaprffin (CnH2n+2-xClx ), Hydrogen Peroxide (H2O2) and Polyvinyl Chloride (PVC).
Caustic soda, or sodium hydroxide (NaOH) is produced by salt. It is commonly used as a chemcial base for light industries in the manufacture of detergents, pulp and paper, textiles dyeing and printing. In the chemical industry, caustic soda is used in the production of agricultural pesticides, fertilizers, glass, ceramics and dyeing materials. The chemical is also widely used in the organic chemistry, defense, metallurgy and construction industries.
About Kingboard Chemical
Kingboard Chemical Holdings Ltd (HKEx: 148) is one of the world's largest laminates and printed circuit boards manufacturers. Since the establishment of its first laminates plant in 1988, the Group has been growing in scale and expanding through vertical integration to become a widely recognized industry leader in laminates and printed circuit boards, with upstream capabilities in copper foil, bleached kraft paper, glass yarn, glass fabric, formalin, hydrogen peroxide, epoxy resin and TBBA. The Group's core manufacturing capability comprises an integrated network of more than 40 plants in China. The Group has been added to the MSCI Hong Kong Index as a constituent since May 2004.