HONG KONG - Cathay Industries Group, a Hong Kong-based manufacturer of iron oxide and chrome oxide pigments, is investing in a joint venture with chemical manufacturer Tonghua Group to build a new production plant for yellow, red and black iron oxide pigments in Tongling, Anhui Province, China.

The joint venture plant, named Rely Science & Technology Co. Ltd., will use modern technology including fully integrated waste stream recycling. Stage-one capacity will be 100,000 metric tons per annum, and stage two will see expansion to 150,000 metric tons per annum.

Cathay Industries Group’s global CEO, Terrence Yu, explained that the plant will be engineered to run with waste heat from neighboring fertilizer facilities, which will optimize energy use and substantially reduce carbon exhaust. The production process will use the all-liquid phase method, which significantly reduces liquid and solid waste.

The new facility will also help Cathay Industries Group increase its total manufacturing capacity to well over 200,000 metric tons per annum. At the same time, the company will expand its finishing capacity to keep up with increasing demand for its ready-to-use pigments.

Tonghua Group, established after merging four enterprises together during the 1990s, produces pyrite, fine and selective sulphur ore, sulphuric acid, fertilizer, phthalic anhydride, and titanium dioxide.