The Shandong facility is located in Binzhou City, Shandong Province, China.

The plant will combine both processes, which are used to produce propylene and isobutylene, respectively.

The new units will produce 133,000 metric tons of propylene and 87,000 metric tons of isobutylene annually.

UOP will provide the engineering design, technology licensing, catalysts, adsorbents, equipment, staff training and technical service for the project.

UOP senior vice president and general manager for process technology and equipment Pete Piotrowski said producers are looking for opportunities to integrate processes to maximize product yields and reduce production costs.

"This is the first plant in the region to integrate our C3 and C4 Oleflex technology in a single unit and this project will help meet demand more efficiently, while improving the facility’s return on investment," added Piotrowski.

The units are expected to start operations in 2014.