Clariant will construct its first Chinese production facility for flame retardants at its existing site in Daya Bay, Huizhou, Guangdong Province.
Specialty chemical company Clariant announces that it will construct its first Chinese production facility for Exolit OP flame retardants at its existing site in Daya Bay, Huizhou, Guangdong Province. By establishing local production capacity, Clariant says it greatly enhances the speed at which it can provide products to its customers in China. Driven by the fast-growing electrical and electronic equipment industries, in particular e-mobility, 5G communications technology and transportation, there reportedly is growing demand for Clariant’s sustainable flame retardants in China and other Asian markets. The project is expected to be completed and inaugurated in 2023. Upon completion, Clariant intends to source the necessary raw materials to enable local production in China.
“China has been one of the fastest growing regions for Clariant and we expect this development to continue in the future. By investing approximately CHF 60 million to establish a production facility dedicated to providing our local customers with innovative and sustainable Exolit OP flame retardants, we will take another step towards increasing our footprint in China and continue to solidify our position in the local market,” says Conrad Keijzer, CEO of Clariant.
Clariant’s facility in Daya Bay is currently home to the company’s first ethoxylation plant in Asia, which services local pharmaceutical, personal care, home care and industrial application customers. The new investment reportedly is in line with Clariant’s growth strategy for China, which also features other investments, such as the recently completed One Clariant Campus in Shanghai, a newly opened, state-of-the-art joint production facility with Tiangang in Cangzhou and a new Catofin Catalysts facility in Jiaxing, which is expected to come online in 2022. By allocating approximately 35% of growth capital expenditure (capex) to China going forward, the sales share is expected to grow to around 14% by 2025 versus the 10% contribution from China in the full year 2020, according to Clariant.
“By producing closer to our Chinese customers, we can improve cooperation and design tailored solutions to their developing needs as well as significantly reduce delivery lead times. This new facility will also strengthen our overall production network beyond our existing facilities in Knapsack, Germany, and thus is beneficial to our global customer base as well,” says Francois Bleger, global head of Clariant’s business unit additives.
For more information, visit: www.clariant.com
