(Yicai Global) April 17 -- China's Zibo Qixiang Tengda Chemical is expanding its ongoing propylene project to prepare for the estimated shortage of the chemical product in Asia in the next few years. 

Qixiang will lift the production scale to 700,000 tons a year from 450,000 tons, the Shandong province-based chemicals firm said in a statement. Propylene is an important starting product in the petrochemical industry, used in plastics, fibres and packaging.

The company is raising the investment for the project to CNY3.9 billion from CNY3.1 billion (USD581.4 million up), and 92 percent of that will be fixed-asset investment. The construction will span over 24 months and involve installing US-based Honeywell UOP's technologies to the dehydrogenation of propane.

Propylene supply has not been matching demand in Asia in the recent years, and the shortage is likely to be intensified, which creates opportunities, the firm added. 

Editor: Emmi Laine