24 July 2012 11:16 [Source: ICIS news]
LONDON (ICIS)--Wanhua Industrial Group has decided to set up a production plant in North America, the Chinese isocyanates company said on Tuesday.
The producer, which expanded into Europe in February last year when it gained control of Hungarian isocyanates company BorsodChem, is seeking new markets because the European economic environment remains in crisis, added Ding Jiansheng, who is both CEO of Wanhua and the chairman-CEO of BorsodChem.
However, the company still sees business opportunities in Europe while also wanting to become the most reliable toluene di-isocyanate (TDI) supplier in the Europe, Middle East and Africa (EMEA) region, he added.
No other details on the schedule or production parameters for the expansion into North America were available from Wanhua.
In an update on progress at BorsodChem, Wanhua said that while the company still had debts of around €1bn ($1.2bn), it had made a “major achievement” in delivering a profit in May and June of this year, the first time the company has operated profitably since the global economic crisis took hold in 2008.
Management at BorsodChem is considering more than 1,500 ideas submitted by employees on how to streamline operations and BorsodChem and Wanhua are delegating their most suitable people to a global business coordination project to make the most of existing synergies between the companies, it added.
The Bank of China has released a €200m loan to BorsodChem, Wanhua also noted.
The loan was approved last year but the disbursement of it was suspended due to the negative economic environment, it said.
($1 = €0.82)
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