Hainan Handi Sunshine Petrochemical Ltd. is moving forward again with a previously stalled plan to build another base oil plant at the site of its existing base oil refinery in Hainan province, China.
An official with the company, who asked not to be identified, told Lube Report Asia last week that Handi Sunshine (HDS) recently resumed taking steps in the pre-construction phases of the project. It now targets a late 2017 startup date for the new plant, which is being designed for capacity to make 800,000 metric tons per year of API Group II+ and Group III oils.
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The official added that leaders in the company are discussing whether the new facility should serve more lucrative industries such as cosmetics and food, but no decision has been made yet.
Competition in the engine oil market is getting more intense so the profit is limited, she said.
HDS already operates a 300,000 t/y Group II plant on Hainans Yangpu Peninsula. In 2013 the company disclosed plans to construct a second plant. Initially it targeted a completion date of 2016, but the beginning of construction was delayed last year because of land disputes with local communities, which were recently settled.