Daqing Petroleum and Chemical Group, the window company of the Daqing municipal government in Heilongjiang province, is to invest 92.7 million yuan (HK$86.11 million) in bolstering production capacity to meet demand. Speaking after the company's annual shareholders meeting yesterday, chairman Wang Danhui said it would spend 80 million yuan building a production base in Daqing for energy-saving diesel, a petrochemical product designed to improve burning efficiency. The company will also invest 12.7 million yuan in a 63.5 per cent-owned factory in Huludao, which will produce anti-corrosive coating products used for ships. The two factories are to be completed next year. Mr Wang said China was reliant on imports of energy-saving diesel and consumed 8,000 tonnes annually at a cost of 55,000 yuan per tonne. He said Daqing Petroleum's product would cost 45,000 yuan a tonne. The Daqing factory will be able to produce 2,000 tonnes of energy-saving diesel a year. Mr Wang said 80 per cent of the Huludao plant's annual output of 15,000 tonnes would be sold to Bohai Shipyard, Dalian Shipyard, Tianjin Shipyard and Qinghuangdao Shipyard.