(Yicai Global) Nov. 30 -- Shares in Lubei Chemical surged by the exchange-imposed daily limit today after the Chinese chemical producer said its new titanium dioxide factory, which will double the firm’s annual output, is now operating.

Lubei Chemical’s share price [SHA:600727] closed up 10 percent at CNY10.74 (USD1.70), giving it a market capitalization of CNY5.7 billion (USD890.7 million).

The new plant, which cost CNY819 million (USD128.5 million) to build, will lift Lubei Chemical’s output of titanium dioxide, an inorganic chemical pigment widely used in plastics, paper, chemical fibers and other products, to 200,000 tons a year, the Binzhou, northeastern Shandong province-based company said yesterday.

The factory, built and operated by unit Shandong Jinhai Titanium Resources Technology, will also form a production synergy with the company’s other titanium, sulphur, phosphorus and calcium products to achieve a recycling economy, it added.

Lubei Chemical is mainly involved in the production of fertilizers, cement, salts and titanium dioxide. It hires over 1,000 staff and has assets of CNY4.1 billion (USD643.3 million).

Editors: Dou Shicong, Kim Taylor