ZHUHAI, China—Isocyanates producer Yantai Wanhua plans to spend $323 million at a site in south China that will produce materials including modified methylene diphenyl diisocyanate.

The new company, registered as Guangdong Wanhua Chemical Technology Co. Ltd., is located in the Gaolan Port Economic Area in Zhuhai, Guangdong. Construction of the facility will be divided into two phases, Yantai Wanhua said. The first phase will include includes modified MDI and thermoplastic polyurethanes, and have a capacity of 50,000 metric tons per year and 20,000 tons, respectively.

Yantai Wanhua said work on the project is expected to begin in July and be completed in June 2015.

In the second phase, in 2017-18, the main plants' capacity will be doubled and a polyether polyol plant of 50,000 ton will be built, the firm said.