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Economy · Business
Wanhua Chemical plans USD 1.3 bln plant in the U.S. to avoid tariffs
CKN
2018/11/20 05:37:47
2,400
China's News, China's Financial News, Wanhua Chemical

Nov 20, 2018 (China Knowledge) - China, Shandong based Wanhua Chemical will be building a factory in the U.S. to avoid tariffs hikes put in place by the Trump Administration following the rising trade tensions between China and the U.S. Wanhua Chemical is one of the world's largest producers of MDI (Methylene diphenyl diisocyanate) that is used in the production of polyurethane.

The proposed plant will be located in Convent in Louisiana and will be producing MDI and at the same time promote its products in the North American market.

Wanhua will invest USD 1.3 billion for the construction of the new plant, which will have a capacity to produce 400,000 tons of MDI annually. The firm will create 1,000 new jobs in the U.S. for its construction and will be employing 170 people upon its completion.

Currently, Wanhua's MDI products are subject to a 10% tariff. The opening of its U.S. plant will help solve its tariff issue and make its products more competitive in the U.S. markets. Apart from Wanhua, other Chinese companies such as home appliance firms including KingClean Electric and Gree Electic Appliances are also considering setting up plants in the U.S. to avoid tariffs.

 

 

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