China has completed construction of a factory capable of producing 100,000 tonnes of foaming agent annually in Qaidam Basin of Qinghai Province.

Such foaming agent is said to be widely used in the energy saving in architecture, shoe-making, automotive and food processing industries.

Trial production will begin at the factory next month, according to local sources.

It is believed that the factory will be the largest of its kind in the world by output when the factory starts full production.

The factory is located about 60 kilometers north to Golmud City, the second largest city in Qinghai. It cost 1.3 billion yuan (about US$197 million) for construction.

The factory is a joint venture among five Chinese enterprises. Qinghai Salt Lake Industry Group Co. Ltd., has a 70 percent stake, and Zhejiang Haihong Holding Co. Ltd., based in Hangzhou, capital city of east China's Zhejiang Province, occupies another 15 percent, while three other companies share the remaining 15 percent.

The Qinghai foam agent factory will create 600 jobs, achieve two billion yuan in annual sales and 300 million yuan in taxes each year, according to local authorities.

(Xinhua News Agency December 27, 2010)