Hong Kong-invested fuel trader Sinoenergy Holdings will spend HK$100 million to tap mainland demand for environmentally friendly foam packaging. The company will set up a plant to produce biodegradable polystyrene foam in Yantai, Shandong province. It will have 14 production lines, each with a daily capacity equivalent to 200,000 to 250,000 lunch boxes. Sinoenergy founder and chairman David Wong Wai-chi said statistics showed China used 25 billion foam lunch boxes in 2000 and demand would grow 20 per cent a year. He said China banned the use of traditional polystyrene foam last year. Sinoenergy, founded by Mr Wong and two former Hong Kong bankers a year ago, trades in petrol, liquefied petroleum gas, coal and petrochemicals in China in partnership with mainland fuel-trade licence holders. Mr Wong holds 50 per cent of the company, while the other founders hold 25 per cent each. Mr Wong said Sinoenergy would seek a mainboard listing in Hong Kong in a year or two.