The Shandong project will add 50,000 tonnes per year of EPDM rubber capacity in two phases, with start-up planned for December 2027.
DONGYING, CHINA – China’s Lihuayi Group is advancing a major expansion of its synthetic rubber production capacity with a 50,000-tonne-per-year ethylene propylene diene monomer (EPDM) rubber project in Shandong province. The project represents an investment of approximately ¥2.28 billion (about $340 million) and is being developed at the company’s existing site in the Lijin Binhai New Area Chemical Industrial Park.
The new EPDM facility will be developed in two phases of 25,000 tonnes per year each, with the overall project scheduled to begin operations in December 2027. Lihuayi is developing the project through Lihuayi (Lijin) Engineering Plastics Co. Ltd.
The project received environmental approval in January 2026, but the company subsequently submitted a revised environmental assessment after major changes were made during the detailed design stage. Lihuayi’s April public notice also confirmed plans for a 50,000-tonne-per-year EPDM production unit at the existing facility.
Under the revised plans, the project will include expanded supporting infrastructure. Ethylene storage capacity is being increased from 3,000 cubic metres to 6,500 cubic metres, while wastewater discharge associated with the washing process will rise from 15 cubic metres per hour to 75 cubic metres per hour.
The updated design will also include four ethylene unloading positions, compared with two previously planned, together with an additional unloading position for hydrochloric acid. A new flare system covering 1,224 square metres has also been incorporated into the revised project.
Lihuayi previously indicated that the EPDM facility would use solution-polymerisation technology supplied by Italy’s FasTech. The technology will support production of EPDM, a synthetic rubber widely used in automotive components, seals, hoses, weatherstripping and other industrial applications.
Once operational, Lihuayi expects the facility to generate approximately ¥1.7 billion in annual sales and around ¥460 million in annual profit and taxes, according to the company’s project information.
The investment will add significant EPDM capacity to China’s synthetic rubber manufacturing base. Expanding domestic production can provide additional material supply for downstream industries that use EPDM in automotive, construction, electrical and industrial applications.
The project also builds on Lihuayi’s existing chemical manufacturing infrastructure in Shandong, allowing the company to develop the new rubber capacity within an established industrial location rather than creating an entirely new site.
With construction and supporting infrastructure progressing through the approval and development stages, the planned 2027 start-up will add 50,000 tonnes of annual EPDM capacity to Lihuayi’s portfolio and further expand China’s synthetic rubber production capabilities.