Jul 2 2006
Solvay announces today that it has decided to build a new world-class polytetrafluoroethylene (PTFE) Micronized Powder production unit in the People’s Republic of China, to serve the dynamic local demand for innovative and high performance materials. Pending authorization from the relevant authorities, Solvay would initiate production in the second half of 2007.
PTFE Micronized Powders, marketed under the brand name Polymist ®, are used in a variety of complex applications, such as the manufacturing of cosmetics, high gloss inks, high performance lubricants and heat-resistant materials. The demand for micronized PTFE in Asia and particularly in China is fuelled by both the fast development of a local customer base as well as by the creation of local production facilities by a number of Solvay’s global clients.
This latest move materializes Solvay’s geographical expansion strategy into fast growing markets, with a particular focus on Asia. Other recent initiatives in Asia include the acquisition of the ultra performance polymers activities of Gharda Chemicals in Panoli, India; the creation of a high performance materials R&D and marketing platform in Shanghai, China; setting up a joint venture for the development, production and marketing of High Purity Hydrogen Peroxide in Suzhou, China and the commissioning of a new production facility for fluorinated chemical specialties in Onsan, South Korea.
The new Polymist ® facility would be located in the Jiangsu High-Tech Fluorochemical Industrial Park in Changshu some 100 kilometers west of Shanghai – and operated through Solvay Specialty Polymers Changshu, a newly created and fully-owned subsidiary of the Solvay group. The location was selected because of its proximity with Shanghai and the dedication of the Industrial Park to complex technologies in specialty chemicals and polymers - and particularly in the area of fluor technologies. In a first stage of development, the Changshu unit would occupy a surface of some 50,000 square meters. However, Solvay has also signed with the Park Authorities a Land Reservation Agreement for a total surface of 350,000 square meters in order to make Changshu the Solvay industrial base in China for further investments in Specialty Polymers.
The amount of the initial investment will not be released
“Our geographical expansion into high growth markets such as China and India is an essential part of our strategy to grow the Specialty Polymers business. This new step is very important for us and should pave the way for future developments,” commented Vincenzo Morici, General Manager, Strategic Business Unit Specialty Polymers.
This new PTFE Micropowder facility and its products will be managed by the operating units of Solvay Solexis, a 100% subsidiary of the Solvay group. “Deploying a local production capacity enables us to offer world class product and services to our local clients as well as to our Global customers with all the advantages linked to proximity, in terms of logistics and reactivity,” said Pierre Joris, CEO of Solvay Solexis SpA. “Newly available capacity will also be used to address the growing demand of Solvay Solexis traditional customers in other parts of the world,” Joris added.