Degussa sets up multi-user complex in Shanghai

Degussa has chosen the Shanghai Chemical Industry Park (SCIP) as the location for its new multi-user production site.

The complex will be operated by a new subsidiary of its Chinese holding, Degussa Specialty Chemicals (Shanghai).

Chairman Utz-Hellmuth Felcht described the long-planned investment as ‘an important step in expanding our China commitment’. He said the property leased from Chinese authorities, will be an ‘expandable platform’ on which to locate production facilities for a number of business units.

As China is expected to become the world’s second largest chemicals market after the US by 2015, the German group is positioning itself there ‘at the right time’, he added.

Degussa has an exclusive option to occupy up to 600 000 m² of space in the park, which will not be shared by outside companies or joint venture partners, a spokeswoman told ECN.

The first new project will be a €10m polyester resins plant for the Chinese coatings industry. Operated by Degussa’s coatings & colourants business unit, the facility is due onstream in 2006.

While Degussa has not identified a sales target for China, its long-term goal is to generate 25% of overall sales in Asia.

Meanwhile, Degussa is expanding the capacity of its carbon black plant, which began operations in October 2002, in Paulinia, Sao Paulo, Brazil.