While stepping up overseas market expansion, Chinese suppliers are investing substantial capital into domestic capacity expansion and R&D upgrading. A string of landmark projects was launched in 2026.

KUMHO-SUNNY breaks ground on US$155 million manufacturing base

In May, Shanghai KUMHO-SUNNY Plastics Co., Ltd. broke ground on its new manufacturing base in Lu’an, Anhui Province, China. With a total investment of US$155 million, the 25-acre site will be developed in two phases. Once complete, it will be the company's largest single production facility.

Groundbreaking ceremony of KUMHO-SUNNY’s new manufacturing base in Lu’an.

The new manufacturing base will feature highly automated, low-carbon production lines designed to meet industry smart factory standards. The facility will primarily supply high-tech sectors, including new energy vehicles (NEVs), high-end home appliances, and advanced electronic materials, significantly boosting the company’s capacity for premium modified plastics.

This new capacity in Lu'an will further solidify KUMHO-SUNNY’s competitive edge in the modified plastics market. By securing a more efficient, low-carbon supply chain for East, Central, and Western China, the facility is set to catalyze the development of a regional high-end plastics and rubber manufacturing cluster.

The Lu'an facility marks KUMHO-SUNNY's latest major smart manufacturing project, joining its existing production bases in Jinshan (Shanghai), Foshan (Guangdong), and Thailand.

Highsun AKRO invests US$118 million in Fuzhou plant

Highsun AKRO Engineering Materials (Changzhou) Co., Ltd. invested a total of RMB 800 million (approx. US$118 million) in Fuzhou plant.

Grand opening ceremony of Highsun AKRO’s new Fuzhou plant.

The new plant, with an annual capacity of 100,000 tons, is equipped with advanced ICX innovative modifying and extrusion technology and engineered plastic formulating system from German AKRO-PLASTIC. It will mass produce AKROMID PA6, PA66, PPA, as well as AKROLOY PA66/PPA alloy material and customized color products, covering main-stream high-end modified engineered plastic products.

Fuzhou plant will develop according to three directions:

1. Innovation: Build localized R&D laboratory based on German and Chinese technologies, empowering multiple industrial chain including automotive, E&E, kitchen & bathroom, and more.

2. Green and low carbon: Introduce energy-saving manufacturing equipment.

3. Collaboration for win-win situation: Integrate into Highsun Group and continue to attract local experts to facilitate high-quality development in Fuzhou.

In the future, Highsun AKRO Engineering Materials’ Fuzhou plant will focus on develop towards cost-effective, large-batch production. Along with the company’s high-end modified material focus, the dual development strategy delivers all-rounded high quality engineering materials for customers.

Woerfu Chemical invests in NEV wave absorbing material inspection

Chongqing Woerfu Chemical Co., Ltd. partners with Fuling government in Chongqing, China to build a research institute for specialized engineering plastics. With a total investment of RMB 20 million, the project is a new-generation R&D institute, combining inspection & analysis, professional sectors, market connection, and result transformation into one.

The core of the institute is the world-first inspection center for wave absorbing material for NEVs. The center will focus on performance testing on “absorbing-type” electromagnetic shield material, covering on applications in NEV electric control, transportation communication, mmWave radar, 5G/6G communication, military & defense, and more.

The research institute is now under construction phase.

Wanhua Chemical and Sinomax launch Joint Innovation Lab

On July 9, Wanhua Chemical and Sinomax launched the Joint Innovation Lab at Sinomax’s Jiaxing site. The two companies also signed a strategic cooperation agreement.

Joint Innovation Lab at Sinomax’s Jiaxing site.

Focusing on advancing differentiated, high-performance, and sustainable PU foam solutions, the Joint Innovation Lab features Wanhua Chemical’s technological advantages in upstream raw material R&D and market applications.

Wanhua Chemical focuses on upstream PU raw material R&D while Sinomax delivers its expertise in foam manufacturing, market-end application, and global market research ability. This collaboration builds a whole-chain R&D system, covering raw material R&D, formulation verification, process optimization, quality control, and market application, focusing on differentiated, high-performance, environmentally-friendly PU foam products R&D.

Jiaren New Materials opens new production base for polyester

In March, Zhejiang Jiaren New Materials Co., Ltd. opened its new base for producing polyester. The first phase of 50,000-ton production capacity is in operation.

The production base is equipped with an independent test cell and solid state polymerization (SSP) plant for producing high-performance fiber raw materials, supporting innovation and product upgrading for circular material technologies. The distributed control system (DCS) in the new base enables automated and stable production.

In key processes, the new base achieves multiple technological innovations, including integrated application on gravity separation, purification, and discoloration, as well as 10,000-ton recycled DMT production. These technological breakthroughs improve resource efficiency of wasted textile products, building a solid foundation for scaling circular material use in the future.

LK Group builds new Intelligent Casting Research Institute

LK Group successfully topped out the main structure of its new Ningbo LK Intelligent Casting Research Institute on June 30, marking a critical milestone in the implementation of the Group’s R&D strategy for high-end intelligent casting technologies.

Topping-out ceremony of the Ningbo LK Intelligent Casting Research Institute.

The Ningbo LK Intelligent Casting Research Institute will cover new technology development, trial production and testing of new products, pilot testing of industrial robots, and technical services for overseas markets.

This project serves as LK Group’s core scientific and innovation carrier to seize future industrial opportunities and claim technological high ground.

It also represents a key strategic layout for the Group to deepen its presence in high-end equipment manufacturing, boost industry-university-research collaboration, and advance cutting-edge industrial technologies.

Dual pathway: Local and overseas expansions both matter

Alongside their “going global” strategy, Chinese suppliers have rolled out large-scale domestic investments in new production and R&D facilities.

Apart from expanding production capacity and quality, the projects focus on industry hot topics – low-carbon production, technological innovations, and specialized materials for high-demand industries including NEVs and E&E.

These projects help consolidate domestic supply chains, build regional advanced manufacturing clusters, and lift China’s plastics industry from mass production to innovation-driven, high-value manufacturing.