(Yicai  Global) Nov. 26 -- Hengxing Science & Technology will invest CNY3  billion (USD432 million) in the construction of a silicone product base  in northern China's Inner Mongolia Autonomous Region.

The wiremaker has set up a new unit and inked a  framework cooperation agreement with the local government in Dalad near  the city of Ordoz, the Henan-based firm said in a statement. 

The  project, to be built in two phases, entails a total investment of CNY3  billion and will produce 120,000 tons of high-performance silicone  polymer each year. 

The  first phase involves an investment of CNY1.8 billion for the  construction of a 200,000-ton organic silicon monomer project, which  will take 18 months to build. 

The  second phase, with an estimated investment of CNY1.2 billion, will  bring the annual output of silicone polymer products to 120,000 tons,  including mixed dimethyl cyclosiloxane, octamethylcyclotetrasiloxane,  methyl silicone oil, and vinyl silicone oil, as well as an annual  10,000-ton output of hexamethyldisilazane, tetraethyl orthosilicate and  other by-products.

Local authorities will provide land, energy supply and public infrastructure support for the project.

Editor: William Clegg