China’s Jiahua Energy Chemical Industry has taken another step forward in its high-performance synthetic rubber expansion project in Zhejiang province following the release of a construction planning notice for the first phase of the development.
The project, located in Haiyan Economic Development Zone in Jiaxing, was initially announced in late 2025 and carries a total investment of approximately Yuan 1.25 billion (€160 million). Once fully completed, the facility will have the capacity to manufacture 240 kilotonnes per annum (ktpa) of advanced synthetic rubber materials.
Development of the project will be carried out in two phases, with each phase designed to add 120ktpa of production capacity. During the first stage, the company plans to build two continuous production lines for solution styrene-butadiene rubber (SSBR), each with an annual production capacity of 60ktpa.
The project will also include supporting infrastructure such as downstream processing units, storage facilities, utility systems, and waste treatment operations necessary for integrated large-scale production.
To secure stable raw material supplies, the company intends to construct a 2.6-kilometre butadiene pipeline linked to Sanjiang Chemical’s public pipeline network. This connection is expected to improve operational efficiency and ensure continuous feedstock availability.
The environmental impact assessment for the facility received approval from the Jiaxing Ecology and Environment Bureau in October 2025. Following the completion of remaining energy and safety assessments, construction is expected to take approximately 18 months, with commercial operations planned to begin in 2027.
The facility will mainly focus on producing SSBR grades used in high-performance tyres. SSBR is widely used in the tyre industry because it helps improve rolling resistance, fuel efficiency, durability, and road grip performance.
In the future, the project may also expand into the production of specialty rubber materials, including low-cis rubber and thermoplastic styrene-butadiene rubber, further broadening the company’s advanced materials portfolio.
The investment reflects rising demand for advanced synthetic rubber products in automotive and industrial applications while supporting China’s efforts to strengthen domestic production capabilities in high-value chemical materials.