Clariant Strengthens Presence in China with Opening of its First Ethoxylation Plant in Asia

Muttenz/ Shanghai, November 1, 2011 - Clariant, the Swiss leading specialty chemicals company, announced the inauguration of its ethoxylation plant in Daya Bay at Huizhou, Guangdong Province, China today. The plant not only benefits customers with local production but also brings global know-how and technology in product development to the local market. Construction of the plant is pivotal to Clariant’s global strategy on further developing the emerging markets.

The plant in Daya Bay is also Clariant’s first ethoxylation plant in Asia, as well as the largest Asian site under its global Industrial and Consumer Specialties (ICS) Business Unit. The plant will enhance regional offering for a wide range of industries including crop protection, construction, personal care, industrial and home care. Applications from these industries will help satisfy the rapidly growing demand in China and other Asian markets.

“In line with our business strategy for regional expansion, we make another important stride today on our global ethoxylation footprint with our first ethoxylation site here in Asia. It is another major investment of ICS Business Unit in China after setting up our MPP (Multi-Purpose Plant) in Zhenjiang two years ago. These production facilities are bringing our global expertise and innovation closer to our customers in the local markets,” says Michael Willome, Global Head of Industrial and Consumer Specialties (ICS) Business Unit, at the inauguration ceremony.

The Daya Bay plant, which covers 80,000 square meters, has an initial capacity close to 50,000 tons per annum. The world-scale facility runs on the latest automation and environment management technology. Additionally it is equipped with an autoclave laboratory to allow fast product development and customization of products to local demands.

Autoclaves are chemical reactors designed to run reactions between gases and liquid or between gasses alone. They are operated under pressure and at elevated temperatures. This reactor set-up allows the production of a broad range of chemical structures in a short time.

By thus, the autoclave laboratory at Daya Bay plant enables product developments on small scale in close cooperation with our regional customers.

Customers can be involved at an early stage of product development. Prototype production and application testing can be efficiently coordinated to develop tailor-made solutions. The integration of the lab in the plant facilitates a fast transfer of the developments to the production stage. Clariant ensures state-of-the-art ethoxylation technology at all its respective sites by a global technology team and extensive trainings of personnel.

Located at the Pearl River Delta, Daya Bay in Huizhou has long been regarded as one of China’s most important petrochemical hubs. Clariant sees huge opportunities in setting up its facility in this area and feels well positioned with its product portfolio as a downstream product consumer. Geographically, Clariant’s new plant sits besides its long-term partner CSPC (CNOOC and Shell Petrochemicals Company Ltd), which supplies raw materials to Clariant. The location also enables the Daya Bay plant to take full advantage of its close proximity to nearby logistics centers in Guangzhou, Shenzhen and Hong Kong.

Clariant has more than 50 year’s expertise in ethoxylation. During the period, we gathered rich experience in developing, producing and marketing ethylene oxide derivatives. Clariant stands among the largest producers of ethylene oxide derivatives (EOD) globally and has a leadership position in related specialty applications. With plants already established in Europe, North America and South America, the new plant in Daya Bay further complements Clariant’s leadership in EOD supply.

“Expanding Clariant’s business in emerging markets is key to our overall growth strategy. The investments are proof of our commitment to the Greater China region’s qualitative growth and to the customers of our various business units,” says Per Sjoeberg, Clariant’s Regional Head of Greater China.

Clariant has invested CHF 200 million in Greater China during the past five years. “We have a long-term commitment to invest and continue to support market growth in China,” adds Per.

Daya Bay plant is believed to be a promising asset of Clariant in China and enables Clariant to meet increasing demand from the Chinese and wider Asian markets in fields of crop protection, construction, personal care, industrial and home care.

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