Nantong, China -- Chemtura Corp. held a groundbreaking ceremony 7 April for a multipurpose manufacturing facility in Nantong to support the company's growth strategy in China/Asia-Pacific.
The Nantong, Jiangsu Province, facility will be operational within two years, with four production units supporting Chemtura's Urethanes businesses as well as its Industrial Performance Products and Petroleum Additives businesses. Chemtura expects to start operating the first unit in the fourth quarter of 2013.
In addition, Chemtura said it plans to make a wider range products at Nantong in future phases.
Chemtura's goal is to improve support of its business growth through increased manufacturing capacity in rapidly growing regions. This facility will be Chemtura's largest single investment since its formation in 2005 and will be its focal site for manufacturing in Asia-Pacific, and specifically in China. The company did not disclose its investment, which is being made over three years.
"This project is a huge step forward and a statement to our customers and investors that we are truly committed to our growth strategy in the world's fast growing regions. We are going to make a broad array of our leading-edge products at Nantong in order to be closer to our customers, to shorten the timeframe for new product development and commercialisation in the region, as well as to shorten the supply chain for these growing markets," said Craig Rogerson, Chemtura's chairman, president, and chief executive officer, in a company statement.
At Nantong, Chemtura will have production lines, administrative and maintenance buildings, utilities, a centralised control room, and quality control labs. The group said the planned investment "will support the growth of our Industrial Performance Products segment's Petroleum Additives and Urethanes businesses."
Urethanes are among the products Chemtura will bring online in the first two years. This includes ts low-free (LF) prepolymer urethanes, where demand is driven by the commercialisation of Chemtura's high-performance, greener Adiprene Duracast line, coupled with increasing global and regional demand for its LF products.
Chemtura said additional LF prepolymer capacity in China will allow it to continue to grow its 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.
Chemtura said it also plans to add sales representation, technical development centres, joint ventures and bolt-on acquisitions, to aid its regional teams to serve a growing customer base with service and technical support.
Chemtura Corp.with 2011 sales of $3 billion, is a global manufacturer and marketer of speciality chemicals, agrochemicals.
PIC: From left: Stephen Forsyth, Chemtura executive vice president and cfo; Chet Cross, Chemtura executive vice president and president, Performance & Engineered Industrial Products; Craig Rogerson; Qiang Qiang, director, Nantong Economic and Technological Development Area (NETDA) in Nantong; Yan Xian, NETDA deputy director; and Chen Qiang, NETDA deputy director. (Photo: Business Wire)
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