China's Hongtai Holding plans to build a new scrap tire recycling plant in Hefei that is expected to have the ability to treat 300,000 metric tons of scrap tires each year. The planned 1.2 million-sq.-ft. facility will be located in Hefei's Lujiang High-tech Industrial Development Zone.

The plant will use Hongtai's liquid phase pulverization technology to treat tires from Anhui and other East China provinces.

Hongtai said the $154 million project will have two phases. The first will have a capacity of about 100,000 tons, and should come on stream sometime in 2020. It is expected to generate about $81 million in annual revenue once operational.

The second phase, representing a capacity of 200,000 tons, should be completed by 2023 and will represent about $217 million in annual production.

Headquartered in Guangzhou, Hongtai Holding was established in 2012 and, currently, has capacity to treat 120,000 tons scrap tire annually. It also plans to build a new factory in Jieyang, which is expected to have about 100,000 tons of annual capacity.