Nuplex Industries has begun construction of its third manufacturing facility in China, which is expected to help the speciality chemicals and resins manufacturer overcome capacity constraints it's facing in the world's second-largest economy.
The US$35 million ($42.4 million) plant - in Changshu, near Shanghai - will produce solvent-borne and water-borne resins for industrial applications such as automotive manufacturing.
Chief executive Emery Severin said the Changshu plant, which is expected to be completed in the latter part of next year, would complement Nuplex's existing factory in nearby Suzhou. The company has another Chinese factory in Foshan, just outside of Guangzhou.
"We've been capacity-constrained in China for a number of years," Severin said. "We've had to, effectively, not accept some business so that wasn't great."
Construction of the Changshu factory - initially expected to be up-and-running by the second half of this year - was delayed by a prolonged permit process.