PLASTICS manufacturer and distributor Ngai Hing Hong is to invest 10 million yuan (about HK$9.3 million) to set up manufacturing facilities in Shanghai next year, following recent expansion in Dongguan. Company chairman Hui Sai-chung said the company would establish a small-scale production line and office in Shanghai next year. 'This is to meet the growing demand of colourants and plastic raw materials along eastern China, where a staggering number of plastic-related products manufacturers from Korea and Japan are located,' Mr Hui said. The company recently has had its 100 million yuan manufacturing complex completed in Dongguan, providing 250,000 sq ft of working space. The Dongguan plant has nine production lines, and would increase to 12 next year, Mr Hui said. 'We predict the Dongguan new plant will raise the total production volume by 25 per cent next year.' Mr Hui said price fluctuations of plastic in the past two years had no significant impact on the company, which had passed the rising cost of plastic on to customers. Prices peaked at $15 per kilogram in June this year, compared with $11 at the beginning of the year and $9 now. Trading and distribution of plastic materials accounted for about 83 per cent, or $487.93 million of the total turnover, to June 30 this year.