Süd Chemie Increases Its Presence in China    


Süd-Chemie, a publicly quoted, independent specialty chemical company with a history of 150 years, headquartered in Munich of Germany, will boost investment in China to around 100 million euros (RMB1 billion) in three years, CCR correspondent was told when interviewing with Dr. Günter von Au, Chairman of the Managing Board of Süd-Chemie AG and Dr. X. D. Hu, Managing Director of Süd-Chemie China on September 11th.   
   The investment has been earmarked in building up new business ventures and expanding existing business activities. The Germany-based chemicals group currently operates six production plants and sales offices in China, with plants at two more sites to follow shortly. In 2006, Süd-Chemie generated sales of more than 40 million euros (RMB450 million) in China. The company's goal is to achieve sales of 100 million euros (RMB1 billion) in China in 2010.
    In Jianping, Liaoning province of northeastern China, Süd-Chemie produces additives based on the natural clay mineral bentonite, for use in fields including the foundry, construction and paper industries. In Panjin of Liaoning province and Shanghai, the company produces catalysts for the manufacture of synthetic gases, artificial fertilizer, polypropylene and other chemicals. Panjin, a joint venture with Liaohe Huajin Chemical Group, is also the site for the production of maleic anhydride, an important intermediate product in the chemical industry. Polymerization catalysts for the manufacture of high-grade plastics are being developed and produced in Shanghai. Two sites in Changshu and Zhenjian of Jiangsu province, for the production of pharmaceutical protective packaging and of high-quality foundry products respectively, will follow at the end of 2007 (Changshu) and of 2008 (Zhenjiang).
    "Our involvement in China is an important step forward in our strategy of taking on leading roles in our core sectors in all the world's key markets", says Dr Günter von Au, explaining Süd-Chemie's plans for China." We are confident that we are particularly well placed, as a medium-sized specialty chemistry company, to contribute significantly with our products and services to the further growth of the Chinese chemicals market"
    Performance is rising fast at Süd -Chemie's production plants in China. In Panjin, for example, the productivity of the catalyst production facility has tripled in just three years - a noteworthy accomplishment in the light of the central role played by catalysts in the chemical industry. Within the past three years, the global market share occupied by catalysts produced by Süd-Chemie in China for the production of ammonium - required for the manufacture of products such as fertilizers - has grown considerably from virtually nothing. It is planned to become the overall market leader in this segment in China over the coming years. Meanwhile, Süd-Chemie's Shanghai Jinhai Plant (SSCC) set its focus on production and on research and development of C-MAX catalysts that are highly optimized for the manufacture of polypropylene grades in a variety of different process platforms. And in Jianping, Liaoning province, in just three years, production capacity has doubled at the plant where bentonite is processed into high-quality foundry additives. Equally, the market share of catalysts produced by Süd-Chemie in China for the manufacturing of globally-distributed chemical primary and intermediate products has more than doubled over the past year, and is in fact set to increase even further in 2007.
   The principal emphasis will be placed on catalysts for producing fuels and chemicals out of coal. This means that with the help of catalysts from Süd-Chemie, crude oil can be replaced by coal - a most appealing technology, particularly for coal-rich China. The catalysts of Süd-Chemie are developed for CTL (coal-to-liquid) or CTX (coal to chemicals) processes in China including MTP (Methanol to Propylene). "As far as we know, around fifty of these large coal-based chemical and petrochemical projects may be started in China in the forthcoming years," says Dr. von Au. With the aid of Süd-Chemie's catalytic technology, fuels and almost all other products which are currently manufactured from crude oil can be produced from natural gas or from coal, which offer easier accessibility and longer-term availability. These gas-to-liquid (GTL) and coal-to-liquid (CTL) present vital technologies for the already foreseeable post-oil era. Süd-Chemie produces its catalysts globally at fourteen sites and ranks among the world's leading independent catalyst manufacturers. A further point of emphasis will be performance packaging for pharmaceuticals, which will see the new manufacturing facility starting operations in Changshu in the beginning of 2008.
   "China is ambitious in every sector", says Dr X. D. Hu, Managing Director of Süd-Chemie China. "That's a great opportunity for our products, and one we're seizing by upgrading our existing facilities here and constructing further sites."