Evonik Sanzheng Joint Venture Builds Cyanuric Chloride Plant in China
EUR24 million investment in Chongqing secures strong market position
According to the company, Evonik Industries is systematically consolidating its position in the world market for cyanuric chloride, an intermediate used in agricultural applications and in the textile, paper and plastics industries. The cornerstone for a new plant was laid in Chongqing Industrial Park, Western China. Construction is scheduled for completion by the end of 2008. About 280 employees will work in the plant. With the construction of the new plant, the existing capacity in China will be doubled and will then reach 60,000 metric tons.
Responsibility for the project lies with the joint venture Degussa Sanzheng (Yingkou) Fine Chemicals Co., Ltd., which was established in Yingkou, Northeastern China, in mid-2005. Cyanuric chloride (CYC) and its derivatives have been produced there since the 1980s. Under the joint venture, the capacity was expanded to about 30,000 metric tons in Yingkou. Evonik has a 65 percent stake in the joint venture, the remainder being held by Liu Zhixun, principal stakeholder and Deputy General Manager of Degussa Sanzheng (Yingkou) Fine Chemicals (YSFC) in Northern China. YSFC is a well-known CYC producer with extensive market experience in China and Asia.
The approximately 650 employees of the joint venture generated sales of about EUR46 million in 2006, mainly in the Asia region. With annual growth rates exceeding 7 percent, China is a particularly attractive market for CYC. In addition to the plant in Yingkou (Northeastern China), Evonik currently also produces cyanuric chloride at the German sites of Wesseling (North Rhine-Westphalia) and Münchsmünster (Bavaria).
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