Huashuo Stock (600935.SH) announced plans to invest in a 50,000 tonnes per year allyl chloride project with estimated total investment of 450 million yuan. The project aims to increase internal chlorine consumption, adjust PVC output, and convert self-produced chlorine into higher-value fine chemicals to hedge against chlor-alkali cyclicality.
The construction period is expected to be 24 months, with groundbreaking anticipated in the second half of 2026. The after-tax return on investment is projected at 10.84%. Funding will come from own funds, bank loans, or other self-raised sources. Allyl chloride is an intermediate for epichlorohydrin, which is used in epoxy resins and other downstream products.
