China Sanjiang Fine Chemicals is planning to raise up to US$101 million in an initial public offering in Hong Kong, the South China Morning Post reported. The Zhejiang-based industrial chemical maker plans to use two-thirds of the proceeds to pay for the construction costs of an ethylene oxide plant in Jiangxi. The remainder will be used to support acquisitions and for investment in production facilities for a joint venture with South Korea’s Honam Petrochemical. (011170.SEO). Sanjiang is facing increasing competition in the production of ethylene oxide, an ingredient used in detergents and cosmetics, from state-owned giants China Petroleum and Chemical Corp (SNP.NYSE, 600028.SH, 0386.HK) and China National Petroleum Corp, parent of PetroChina (PTR.NYSE, 601857.SH, 0857.HK).