(Yicai Global) April 12 -- Shares in Shandong Intco Recycling Resources surged as much as 5.95 percent today after the Chinese plastics recycler said it will invest CNY800 million (USD126 million) to build a new factory in Malaysia.

Intco’s stock price [SHA: 688087] closed up 3.56 percent at CNY56.49 (USD9). Earlier in the day it had hit CNY57.80.

Unit Intco Malaysia has purchased land in Kuala Langat, western Malaysia, where it will build a waste plastics processing facility with a capacity of 100,000 tons a year, the parent firm said yesterday. Construction is expected to be finished in three years’ time.

The plant will produce plastic bottles made from three types of waste plastics, polyethylene terephthalate, polypropylene and polyethylene, that it will collect from its global recycling network, the Zibo, eastern Shandong province-based company said.

Intco already has a polystyrene foam recycling factory in Malaysia with a capacity of 100,000 tons a year, and three production bases on the mainland. It is building two other waste PET processing plants in Malaysia and Vietnam.

The company has an annual recycling capacity of 150,000 tons of plastics, which can help reduce carbon emissions by 300,000 tons per year.

It plans to increase its recycling of waste PS to 300,000 tons and waste PET to one million tons a year, and expand the business to other forms of plastic, according to the company website.

Editor: Kim Taylor