Germany-headquartered Pulcra Group unveiled its new, 250 million yuan ($35 million) specialty chemicals project in Shanghai's Jinshan district, reflecting the company's strong confidence in the China market.

The 60,000 metric-ton-per-annum project broke ground on Friday and is expected to produce 700 million yuan worth of chemicals at full capacity, generating a tax revenue of some 70 million yuan per year, Pulcra Group said.

"Our existing production capacity is no longer in line with our further development needs. After comparison, inspection and research, we made the decision to invest in our new project at Shanghai's Carbon Valley Green Bay Industrial Park," said Seyit Gunduz, chairman of Pulcra Group.

Gunduz said the new project will enable Pulcra to better respond to the China market and strengthen the company's global production network. He called China's innovative capability and Pulcra's experience in the industry a win-win combination.

Pulcra's chemical business unit focuses on the development and manufacture of innovative specialty chemicals for the fiber, textile and leather industries.

China offers great opportunities to chemical companies like Pulcra to explore. China produced 64.88 million tons of chemical fiber throughout 2022, accounting for more than 70 percent of the global total output, according to Economic Daily.

"We are very happy our project can complement our target customers that strengthen the Belt and Road Initiative," said Salih Ogul, strategy investment projects and business development director of Pulcra China.

Ogul said China is one of the key strategic markets for Pulcra. The Chinese market and the company's local unit have a significant impact on the company's development and global deployment.

With the constant optimization of the local business environment, and further improvement of industrial and supply chains, Pulcra's development outlook in China appears bright, said Serdar Gunduz, partner and shareholder of Pulcra Group.

"It is the first greenfield project of Pulcra," said Gunduz, adding the company has been involved in the whole process of launching the facility, from looking for a suitable plot of land and searching for a mature and professional industrial park to designing and engineering.

Zhai Jinguo, deputy government head of Jinshan district, said, "The project is tailor-made in accordance with the company's actual requirements, which represents the diversified services and support provided by Jinshan district to enterprises."