October 17 -- Hubei Yihua Chemical Industry (000422) said it will invest 1.16 billion yuan on building new production capacity for 560,000 tons of diammonium phosphate, 800,000 tons of sulfuric acid, 300,000 tons of phosphate, and 10,500 tons of sodium fluoride, reports Securities Times, citing a company filing.

Construction of the production capacities will take one year. The expanded production capacity will bring in annual revenue of 1.89 billion yuan after completion.

The investment was approved by the local government in May. The site of these investments is just 40 kilometers from the Three Gorges Airport, which is a major airport in the northwestern part of China.

Yihua Chemical forecasted that net profit may have increased 65-75 percent year-on-year to 740-785 million yuan in the first three quarters.

The price of its major product, urea, had risen significantly from last year during the reporting period, while a 300,000-ton polyvinyl chloride program of its Qinghai subsidiary has been completed and put into production. Its interest in its Guizhou subsidiary increased during the reporting period.