(Yicai Global) Sept. 2 -- Zibo Qixiang Tengda Chemical, which had planned to invest in an almost CNY3.8 billion (USD524 million) chemicals plant with a Korean partner, has now decided to build the propylene oxide factory by itself.

The Shandong province-based firm expects construction of the facility, capable of producing 300,000 tons of the chemical a year, to take two years, it said in a statement on Aug. 30. It did not explain why it was deciding to undertake the investment alone.

Shares in Qixiang Tengda [SHE:002408] closed up nearly 4.1 percent today at CNY6.87 (96 US cents).

The company, which has disclosed little information about the project so far, had originally planned to build the facility with South Korea's SKC and held a signing ceremony attended by local government officials in December to celebrate their partnership.

The latest statement confirmed the company still plans to use technology from Germany's Evonik Degussa and ThyssenKrupp Industrial Solutions at the facility, and said the three firms all penned licensing and services agreements in July this year.

The new factory will link the company's upstream and downstream companies to give Qixiang Tengda a complete industrial chain in the propane dehydrogenation sector, it said. This will give the firm more control over production costs and profitability, and allow it to expand its product range to include chemicals with three carbon atoms rather than only those with four.

Editor: James Boynton