China's Wanhua Chemical to Build USD1.3 Billion Plant in US to Avert Import Taxes
Tang Shihua
/SOURCE : yicai
China's Wanhua Chemical to Build USD1.3 Billion Plant in US to Avert Import Taxes

 (Yicai Global) Nov. 19 -- Wanhua Chemical  will build a factory in the US to avoid tariff hikes caused by the  escalating trade tensions between China and the US. 

Wanhua Chemical will construct a plant to  make methylene diphenyl diisocyanate in Convent in Louisiana to promote  its products in the North American market, the Shandong province-based  firm said in a statement. 

The investment will amount to USD1.3  billion and the factory will have a production capability of 400,000  tons of MDI each year. MDI is used for making polyurethane foam and  synthetic fibers.

The US government has imposed a 10  percent tax increase on Wanhua's MDI products, the statement said,  adding that the US plant will resolve the risks caused by this issue. Some  Chinese home appliance firms, such as KingClean Electric, Gree Electric  Appliances, and Changhong Electric, have also started looking into  building overseas plants to avoid such additional levies, which have  emerged from US President Donald Trump's Section 301 to protect his  country's domestic players.

During the construction, the firm will  create 1,000 jobs locally. After completion, it will hire 170 employees  directly and over 1,000 workers indirectly. 

Editor: Emmi Laine 

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Keywords: Methylene diphenyl Diisocyanate , Chemical Products , Polyurethane