Bayer MaterialScience increases downstream presence in China

Five new facilities to be completed by 2012

19-Nov-2010 - China

Bayer MaterialScience has announced plans to invest EUR 110 million to build five new downstream facilities in China by 2012 as part of an ongoing process to serve the booming manufacturing sector in the country. The facilities comprise three polyurethanes systems houses, a new polycarbonate sheet facility and a polycarbonate color compounding and design center. Each will be strategically located close to major customers in Shanghai, Qingdao, Chongqing and Guangzhou.

With these projects, Bayer MaterialScience will increase its downstream presence considerably in what has become the company’s second largest market worldwide. Bayer MaterialScience will then have a network covering the main geographical areas of the country.The company currently has a color competence and development center and a polyurethanes systems house in Guangzhou and a further systems house in Nanjing.

“Manufacturing activity is no longer limited to the east and south of China,” explains Peter Vanacker, member of the Bayer MaterialScience Executive Committee and head of the global polyurethanes business. “Many of our customers are opening facilities in the northern and central parts of the country have asked that we continue to support them with customized solutions in these growing industrial regions. We believe it makes good business and economic sense to invest close to them.”

More than 40 percent of Bayer MaterialScience polyurethanes business in China is currently achieved through supplying polyurethane systems to the construction, appliance and automotive sectors, in particular.

The three new polyurethanes systems houses are to be built in Shanghai, Qingdao and Chongqing. The company intends to build the new color compounding and design center in Chongqing, while the sheet facility is planned in Guangzhou.

Guenter Hilken, member of the Bayer MaterialScience Executive Committee and head of the global polycarbonate business, is confident this investment will further strengthen the company’s foothold in China’s polycarbonate market: “Our planned investments reflect our firm commitment as the leading global supplier of polycarbonate solutions to China,” Hilken said. “With the expansion of our global network of production and marketing capabilities, we will enable our customers to participate in the dynamic growth of this fast-evolving market.”

Asia-Pacific currently accounts for more than 60 percent of the world’s polycarbonate production, though that figure is expected to rise to 65 percent by 2015. China accounts for the majority of this demand, and is regarded as the main driver for this growth in view of the increasing importance of the domestic automotive, rail, consumer appliance and electronic industries.

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