A new materials project worth 2 billion yuan ($289 million) will start operations in the Marine Industry Cluster of Zhoushan, an island city in East China's Zhejiang province, local media reported on Aug 22.

The news was released at a signing ceremony held by the cluster's management committee and Zhejiang Yisu New Materials Technology Co Ltd.

The project, which will be constructed in two phases, is expected to have an area of 130,000 square meters and an annual production of 1 million metric tons of polystyrene.

Construction on the first phase will begin in September and will test out production in August next year with an annual production of 400,000 tons, while the second phase will be built in October next year.

After the entire project is put into operation, the annual sales revenue will reach 10 billion yuan.

The green petrochemical base in Zhoushan is the biggest draw for the new materials company, as the main raw material of the company's product – polystyrene – is produced by the base.

According to Song Haiyang, president of Yisu, polystyrene is used to produce optical materials, exterior insulation materials, and the main structural parts of air conditioners, water heaters, and printers.

Song noted that the total production of polystyrene in China was 2.8 million tons last year, and after the project begins operations, it will become the largest production base of polystyrene in China.

The project will directly offer about 200 jobs to local residents and help create more jobs by promoting the development of the entire industry chain in Zhoushan, he added.