(Yicai) May 16 -- Shares of Evergreen New Material Technology jumped by their daily trading limit after the Chinese fine chemicals supplier said it plans to build a CNY10 billion (USD1.4 billion) factory to meet demand from downstream polymer materials makers.

Evergreen New Material [SHA: 603125] closed 10 percent higher at CNY32.20 (USD4.46) a share in Shanghai today.

Evergreen New Material will build the plant in three stages over two years in Taizhou, eastern Jiangsu province, on the side of the Yangtze River, the Zhenjiang-based firm said late yesterday. It will invest CNY3 billion (USD415.7 million) in the first phase, with no investment schedule for the second and third stages yet, it added.

The first stage, to be built in two years, is scheduled to produce eight different aromatic organic chemicals and their derivative products,  Evergreen New Material noted. The chemicals are all innovatively developed by the company, it added.

With the help of the chemicals' special molecular structure, they will serve as raw materials for downstream polymer materials makers to produce new high-performance and environmentally friendly special polymer materials, it said. The plant will likely have a yield rate of over 20 percent when finished, it noted.

Some of Evergreen New Material's products are used as polymerization reaction monomers for polymer materials that meet special property requirements. While others are used to modify fine polymer products to improve their properties.

These two groups of fine chemicals accounted for 93 percent of Evergreen New Material's total operating revenue last year, according to the firm's annual earnings report. Their average gross profit margins were 29 percent and 36 percent, respectively, thanks to few rivals in the market.

Evergreen New Material's overseas sales made up 20 percent of its total last year, it noted. Its international clients include ion exchange resin makers Purolite, Lanxess, and DuPont, as well as polyvinyl chloride stabilizer manufacturers Baerlocher and KD Chem.

Editor: Martin Kadiev