Sinostar PEC (SGX:C9Q) retired a 50K tons polypropylene installation owned by its subsidiary, Dongming Hengchang Petrochemica, according to a Monday filing with the Singapore Exchange.

Shares of the company were up nearly 3% in Tuesday trading.

The plant started operations in 2001 and contributed to 4.27% of the company's sales revenue in the first half of the year.

The decision to retire the plant was taken due to potential safety hazards and narrow product range, along with poor operational efficiency.

Following the decision to retire the plant, the company's polypropylene production capacity will be reduced to 200,000 tons annually.