Wacker Chemie AG is expanding its Chinese polymer activities by investing around €40 million in building two new production facilities at its Nanjing site. The Munich-based chemical group said it is expanding the site’s existing facilities for vinyl acetate-ethylene copolymer (VAE) dispersions by adding a new reactor with an annual capacity of 60,000 metric tons. This measure will double Nanjing’s VAE dispersion capacity to approximately 120,000 metric tons per year, making the complex one of the biggest of its kind in China. The new reactor is scheduled to come on stream in mid-2013. At Nanjing, Wacker is also building a new plant to produce polyvinyl acetate (PVAc) solid resins with an annual capacity of 20,000 metric tons. This plant is due for completion in early 2013.
The new production facilities will give Wacker sufficient long-term capacity to meet the strong demand for VAE dispersions and PVAc solid resins in the Asia-Pacific region. The main application fields for VAE dispersions lie in construction, coatings and adhesives. PVAc solid resins are used in industrial applications and to manufacture gumbase.
“These expansion measures are necessary to keep pace with our customers’ demand for top-class VAE dispersions and high-quality polyvinyl acetate solid resins in the future,” said Auguste Willems of Wacker Chemie AG’s executive board. “By expanding our integrated site in Nanjing, we will strengthen our position as one of the world’s leading manufacturers of polymer dispersions and gumbase resin.”
Wacker’s fully integrated plant at Nanjing already produces vinyl acetate-ethylene copolymer dispersions and dispersible polymer powders for the construction, coating, adhesive and other industries. By bundling its Chinese polymer activities at a single site, the company expects to gain advantages and synergies, achieving economies of scale through a common infrastructure and energy supply. Additionally, it will be able to enhance its transport and logistical efficiency.