Clariant is investing over $65 million to expand the production of flame retardants and better serve China’s fast-growing market.
The specialty chemicals manufacturer Clariant has recently announced that it has begun the construction works for its first Chinese production facility at the existing site in Daya Bay, Huizhou (Guangdong Province), in which the company will develop and produce Exolit OP flame retardants. The project is expected to be completed and inaugurated in 2023.
The Chinese market is experiencing a fast growth, especially for electrical and electronic equipment industries driven by e-mobility, 5G communications technology and transportation. By establishing a local production capacity, Clariant will be able to rapidly provide flame retardants to the whole Asian region.
“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,” stated Conrad Keijzer, the CEO of Clariant.
The Exolit OP flame retardants are based on aluminum diethyl-phosphinate (DEPAL), which has a well-recognized ecotoxicological profile (as opposed to halogenated flame retardants), and carry Clariant’s sustainability label EcoTain® for their proven excellence regarding the environment and health and safety.
Clariant’s facility in Daya Bay is currently hosting an ethoxylation plant for the local pharmaceutical, personal care, home care and industrial application customers within the Business Area Care Chemicals. This new $65 million investment is also underpinned by the company’s strategic growth, such as the newly completed One Clariant Campus in Shanghai, the recent joint production facility with Tiangang in Cangzhou and the Catofin® Catalysts facility in Jiaxing
“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,” added Francois Bleger, Global Head of Clariant’s Business Unit Additives.
By allocating approximately 35% of growth capital expenditure to China, 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.