RAG subsidiary Degussa expands presence in China

Cornerstone Ceremony for New Polymerization and Compounding Plant in Shanghai

Tuesday, July 26, 2007

"We are taking a large step forward in our Asia Pacific strategy,” stated Dr. Joachim Leluschko, head of the High Performance Polymers (HP) Business Unit of Degussa GmbH, Germany, at a cornerstone ceremony for a specialty polyamides polymerization and compounding plant in Shanghai. As he explained, "This investment in the single-digit million euro range will enable Degussa to substantially expand its presence in the attractive Chinese growth market." The plant is scheduled for completion in late January 2008, and deliveries of its products to Asian customers are to start as early as the end of the first quarter of 2008.

While the global market for specialty polyamides is growing at an annual 5 percent each year, the growth rates in Asia are more than 10 percent. The products stemming from the new plant will allow the company to both serve existing markets and open up new niche applications. In the process, the new production facility, which is being built at Degussa's multi-user site (MUSC) at Shanghai Chemical Industry Park, will enable HP to supply its customers in China and the surrounding region with various specialty polyamides and compounds based on regional raw materials. 

(Left to Right) Dr. Thomas Schiffer, Project Responsible of Specialty Polyamides; Dr. Joachim Leluschko, Head of the High Performance Polymers Business Unit; Dr. Karl-Heinz Mangartz, General Manager of Degussa Specialty Chemicals (Shanghai) Co.Ltd.

MUSC is a site at which at which the activities of differing Degussa business units are located. Degussa took its first production facility into operation at Shanghai Chemical Industry Park in June 2006 in the form of a polyester and colorant production facility. The world's largest speciality chemicals company is now planning to erect an integrated facility for the production of methylmethacrylate specialities as well as the respective methylmethacrylate precursors at MUSC by 2009.  

"The new polymerization and compounding plant will be the location's fourth altogether, making MUSC one of Degussa's most important production sites in Asia," states Dr. Karl-Heinz Mangartz, General Manager of Degussa Specialty Chemicals (Shanghai) Co. Ltd. and head of MUSC.

High Performance Polymers (HP) focuses on the production of customized products, systems and semi-finisheds based on high-performance polymers. It currently employs over 1,000 people in Marl, Darmstadt and Witten (all in Germany), Lenzing (Austria), Magnolia (USA), Aboshi (Japan), and Changchun (China), and has access to a worldwide sales and marketing network centered on Marl, Shanghai, and Parsippany. In 2006 HP generated sales of 426 million euros.

Degussa—a wholly owned subsidiary of the RAG Group—is the global market leader in specialty chemicals. Our business is creating essentials—innovative products and system solutions that make indispensable contributions to our customers’ success. In fiscal 2006 around 36,000 employees worldwide generated sales of 10.9 billion euros and operating profits (EBIT) of more than 870 million euros.  

Degussa has been producing specialty chemical products in China since the early nineties, with wide-ranging trading relations already in place prior to this. The Degussa Group meanwhile owns more than 20 companies in the country, with production sites in Anqiu, Changchun, Dalian, Jining, Liaoyang, Nanning, Nanping, Qingdao, Rizhao, Shanghai, Taiwan and Yingkou. In fiscal year 2006, 4,000 employees generated sales of 460 million euros in China, which is an increase of 60 % from 288 million Euro in 2005.  

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