Chemtura to construct new China plant to serve petroleum additives, urethanes
US-based specialty chemicals firm Chemtura is planning to build a new multi-purpose manufacturing facility in Nantong, China, to serve its petroleum additives and urethanes businesses.
“This project lays the groundwork for growth through investment in the world’s most rapidly expanding market. It will enhance our ability to satisfy customer demand in China and the wider Asia-Pacific region,” said Craig A. Rogerson, Chemtura CEO.
As previously disclosed, Chemtura’s goal is to create value for customers and other stakeholders by growing its business with new manufacturing capacity in rapidly growing regions, among other initiatives, it said.
The Nantong facility is expected to initially serve Chemtura’s petroleum additives and urethanes businesses, and is expected to provide sufficient additional capacity for other Chemtura businesses, company officials said.
This planned investment will support the growth of Chemtura’s urethanes business, including its low-free (LF) prepolymer urethanes. This growth is driven by the commercialization of the company’s Adiprene Duracast product line coupled with increasing global and regional demand for LF products, officials said.
“Additional LF prepolymer manufacturing capacity in China would allow us to continue to grow our most advanced product lines and places capacity in a region with strong demand growth, while preserving existing capacity elsewhere to continue supplying customers in other regions,” said Matthew Hellstern, president of the urethanes division.
The petroleum additives business requires local manufacturing and storage capabilities for some of its product lines in order to meet customer demand. These include synthetic finished fluids (refrigeration lubricants, air compressor lubricants and gear oils), and calcium sulfonate grease.
“Local manufacturing capacity for synthetic lubricants is required for the business to respond to the market’s demand for shorter lead times,” said Sean O’Connor, president of the petroleum additives segment.
“Installation of grease capacity in China would provide our customers with a more secure global supply capability, and place capacity in the region with the highest growth rate.”
In addition to the planned development of local manufacturing capacity, Chemtura plans to build global scale with sales representation, technical development centers, joint ventures and bolt-on acquisitions, it said.
Chemtura did not disclose financial information for the facility or a timeline for its completion.
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