China: Engineering Clariant Invests 65 Million Dollars for Building its Flame Retardants Plant
Clariant’s flame retardants facility which is also its first Chinese production plant will be developed at Daya Bay, Huizhou in the Guangdong Province. The move is in line with the firm’s aim of expanding its Exolit OP range of flame retardants in the Asia region and also to meet the growing demand across the electrical and electronic equipment industries in China.
Muttenz/Switzerland – Clariant has recently announced that it will construct its first Chinese production facility for its successful Exolit OP flame retardants at its existing site in Daya Bay, Huizhou, Guangdong Province. Driven by the fast-growing electrical and electronic equipment industries, in particular e-mobility, 5G communications technology and transportation, there is a rapidly growing demand for Clariant’s innovative and sustainable flame retardants in China and other Asian markets.
“China has been one of the fastest growing regions for Clariant and we expect this development to continue in the future. By investing approximately 65 million dollars 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,” said 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 within its Business Area Care Chemicals.
This investment is in line with Clariant’s dedicated growth strategy for China, in which footprint enlargement plays a vital role, alongside customer experience and innovation to support the country’s drive towards sustainability transformation. By allocating approximately 35 % of growth capital expenditure (capex) to China going forward, the sales share for the Group is expected to grow to around 14 % by 2025 versus the 10 % contribution from China in the full year 2020.
“We are very proud and excited to establish production capabilities in China. 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,” said Francois Bleger, Global Head of Clariant’s Business Unit Additives.
Construction of the new production facility started with a groundbreaking ceremony. Local resources will be used during the building process whenever possible. The project is expected to be completed and inaugurated in 2023.