(Yicai Global) June 15 -- Chinese chemical firm Anoky Group will build a textile dye plant in northern China amid increased demand due to tightening government scrutiny on the environmentally hazardous dyestuff industry. 

Anoky will invest CNY100 million (USD16 million) in the plant in Dongying in Shandong province, the Shanghai-based firm said in a statement. The base will increase the firm's production of medium- to high-end dyes by another 50,000 tons a year.

The completion of the deal depends on environmental regulatory approvals, Anoky said. In April, three chemical industry parks in the cities of Lianyungang and Yancheng in Jiangsu province were ordered to stop production and make rectifications regarding 'secret pipes' which dumped toxic waste into local waterways. The news led to price rises due to short supplies.

Editor: Emmi Laine