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China Chemical Corp. Announces Update on MAH Plant Expansion

China Chemical Corp., a manufacturer of organic chemicals for broad consumer goods applications, announced that its new maleic anhydride (MAH) facility has completed its testing phase and has begun production.

The expansionary facility produces an additional 30,000 tons of capacity. The facility entered the testing phase in late 2010 and became fully operational in early January 2011.

Lu Feng, chairman and CEO of China Chemical, stated, "The company is positioning itself to become a major supplier of essential chemicals in Zibo City, and this new facility is a key factor in our growth plans for 2011. We constructed the facility to meet the growing demand for chemicals in China's manufacturing sector, which is being fueled by increasing domestic consumption. With the new facility, we expect to generate additional revenues from the increased production of MAH as well as its byproducts, steam and acid water."

China Chemical Corp. is a Zibo City, China-based manufacturer of organic chemical compounds used in high-performance plastics, PVC, elastic fibers, paints, tires, insulation, flooring, adhesives, medicines, food processing, ink, and paper. The company's primary products are Phthalic Anhydride (PA) and Maleic Anhydride (MAH), which have a wide variety of applications in the construction, automotive, aviation, marine, and consumer goods industries. China Chemical currently has the capacity to produce 60,000 tons of MAH and 50,000 tons of PA annually. The company began site development in October 2010 for a 50,000-tn-capacity 1,4 butanediol (BDO) co-generation plant.

For more information about China Chemical Corp., visit www.chinachemicalcorp.com.

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