en.Wedoany.com Reported - Befar Group announced on July 18 that it plans to build a 250,000 tons/year specialty rubber integrated project through its wholly-owned subsidiary Shandong Binhua New Materials Co., Ltd., and will initially launch the first phase of a 70,000 tons/year halogenated butyl rubber project. The project aims to accelerate the company's green and low-carbon transformation, and is planned to be constructed in two phases. The second phase will be advanced at an appropriate time after separate review based on market conditions.
The project will leverage Binhua New Materials' competitive advantages in location, port, land, wind and solar resources, as well as its comprehensive utility and auxiliary systems and integrated isobutylene raw material supply. It aims to regulate the supply-demand balance of MTBE and enhance the competitiveness of the C4 industrial chain.
Located in the Beihai Economic Development Zone, Binzhou City, Shandong Province, the 70,000 tons/year halogenated butyl rubber project of Shandong Binhua New Materials Co., Ltd. includes a 70,000 tons/year halogenated butyl rubber unit and supporting utility facilities, capable of alternating production of chlorinated and brominated butyl rubber. The total investment is 1.822 billion yuan, funded by the company's own capital and self-raised funds, with a construction period of 2 years.
Economic benefit analysis shows that the project's payback period is 9.51 years (after income tax), the financial internal rate of return on project investment (after income tax) is 9.48%, and the financial internal rate of return on project capital is 13.98%. After commissioning, the average annual operating revenue is expected to be approximately 1.138 billion yuan, with a net profit of about 104 million yuan.
Halogenated butyl rubber is a core raw material for tire inner liners, pharmaceutical bottle stoppers, and high-end seals, with a supply gap in China's domestic market. Upon completion, this project will fill the capacity gap in China's domestic high-end sealant raw materials and extend the company's high value-added C4 industrial chain.
