(Plastemart) -- Japan's Sumitomo Chemical will build a 10 KTa polypropylene compound plant in Dalian, in northeast China's Liaoning province, as per Platts. 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 KTa PP compounds plant in Zhuhai, in southern China's Guangdong province.