Petrochemical and speciality chemical concern HaiKe Chemical Group plans to raise £10 million through Hanson Westhouse.

Founded as a state enterprise in 1988, Shandong-based HaiKe, which made around £4 million pre-tax in 2005 on £100 million sales, produces petrol and diesel through its refineries, as well as derivatives. The float would put a value of £30 million on the company, which produces speciality chemicals for use in medicines, pesticides, food and electronics, together with caustic soda and a range of biochemical products that are exported to the Americas and Europe.

With an annual oil refining capacity of 7.54 million barrels and the capacity to produce 100,000 tonnes a year of speciality chemicals and biochemicals, HaiKe claims its market is shielded by several barriers to competitive entry, namely skills, regulation and long-term customer relationships. Executive chairman Xiaohong Yang, 41, and chief executive officer Zaizhong Zhang, 40, want to use a good portion of the float proceeds used to install heavy oil catalytic cracking equipment.

It could have speculative appeal.