"This investment is another proof point of our commitment to strengthen Clariant’s position in China, where the future of our company is going to be decided. Local production in China puts us in a better position to benefit from the growth perspectives of the Asia region, and especially of China. Being closer to our customers enables us to better cooperate and tailor our solutions to their needs as well as gain valuable market insights,” said Christian Kohlpaintner, Clariant's Executive Committee Member.
With this investment, Business Unit (BU) Additives adds its first two fully-owned production facilities to the company’s long-standing regional network of commercial and technical support. This provides BU Additives increased ability to respond to the strongly growing demand for innovative and sustainable solutions in Asia. For example, the water-based coatings market in Asia Pacific region is estimated to grow from US$15bn in 2015 to US$19bn by 20201.
The expansion of its manufacturing footprint will also enable Clariant to shorten supply lead times and deliver customized high-tech solutions more rapidly in this region. The new facilities at Clariant’s well-established site in Zhenjiang, China, are expected to come on stream in 2018.
The two production units will focus on offering performance additive solutions for packaging, agro-films, automotive and other applications, and micronized waxes for various coatings & inks applications. These innovative and sustainable solutions can improve end product properties, extend energy conservation or have higher recyclability. They will fill unmet needs of new products with stronger sustainable characteristics and improved performance for customers in Asia, especially in China. According to China’s 13th Five Year Plan and the industrial policy ‘Made in China 2025’, the demand for environmentally-compatible and safe products is highly emphasized.
Stephan Lynen, Head of Clariant BU Additives, comments: “Clariant’s BU Additives faces strong demand from its customers in China and across Asia for sustainable value enhancement in the Plastics, Coatings & Inks industries. With our new local manufacturing facilities we improve the proximity to our customer needs, accelerate our response time and enlarge our offering for high-end solutions. Bringing these technologies to the growth markets in Asia is the logical next step.”